Data | Why the rupee is under pressure — explained in seven charts
2 years, 4 months ago

Data | Why the rupee is under pressure — explained in seven charts

The Hindu  

Till recently, the rupee was recording fresh lows every other day. Deteriorating CAD A widening trade deficit causes the current account deficit to deteriorate which in turn adds pressure on the local currency. With slowing global economic growth and looming recession fears, a depreciating currency may not help spur exports which otherwise would have helped at least partly bridge the widening trade deficit. Rising import bill While, in general, a weak currency helps boost exports, it also makes imports expensive. Due to concerns over rising local inflation and a deteriorating current account deficit, foreign portfolio investors have pulled out of Indian equities.

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History of this topic

Rupee at 85 to a Dollar: Sinking Towards 100?
2 days ago

Rupee at 85 to a Dollar: Sinking Towards 100?

The Quint  

India has indeed developed a strong export franchise in not only IT services but also in setting up global capability centers that employ over 1.5 million talented Indians for highly productive use. India, in contrast to its merchandise counterpart, import much less of services, and generate good surplus despite Indians’ itch to travel abroad and seek overseas education. India exported …

Rupee hits all-time low against US dollar. Why is it under pressure?
5 days, 6 hours ago

Rupee hits all-time low against US dollar. Why is it under pressure?

India Today  

The Indian rupee weakened to a record low of 85.10 against the US dollar on Friday, weighed down by persistent dollar strength following robust US economic data that reinforced the Federal Reserve's hawkish stance. Additionally, the US Federal Reserve’s projection of fewer rate cuts in 2025 amid sticky inflation has strengthened the US dollar, making emerging market currencies like the …

Rupee weakens to lifetime low hurt by merchant dollar bids, weak equities
6 days, 20 hours ago

Rupee weakens to lifetime low hurt by merchant dollar bids, weak equities

Live Mint  

By Jaspreet Kalra MUMBAI, Dec 18 - The Indian rupee hit its all-time low on Wednesday, pressured by strong dollar demand from importers and likely outflows from local equities, while intervention by the Reserve Bank of India curbed losses, traders said. Weakness in regional currencies ahead of the Federal Reserve's policy decision due in U.S. trading hours also hurt the …

Rahul slams govt over trade deficit touching all-time high
1 week ago

Rahul slams govt over trade deficit touching all-time high

Deccan Chronicle  

New Delhi: Slamming the Modi government, Leader of Opposition in the Lok Sabha Rahul Gandhi on Wednesday said prioritising crony businesses over play-fair ones leads to weakened manufacturing sector, depreciating currency, record high trade deficits, high interest rates, falling consumption and soaring inflation.Tagging a media report which said that trade deficit and imports are at an all-time high, Gandhi hit …

Record trade deficit adds to rupee’s challenges, may open to all-time low
1 week, 1 day ago

Record trade deficit adds to rupee’s challenges, may open to all-time low

Live Mint  

By Nimesh Vora MUMBAI, Dec 17 - The Indian rupee may slip to an all-time low on Tuesday with the currency, already under pressure from slowing growth, choppy equity flows and a dollar rally, will have to contend with an unexpected widening in trade deficit to a record high. The jump in gold imports and weak exports pushed India's merchandise …

Trade deficit at a record $38bn as gold imports rise
Top News
1 week, 1 day ago

Trade deficit at a record $38bn as gold imports rise

Hindustan Times  

India’s merchandise trade deficit widened to a record $37.84 billion in November, driven primarily by surging gold imports and falling exports, a trend experts said threatens to add pressure on the rupee which is already strained by three months of portfolio outflows. Imports, however, surged by 27% to $69.95 billion compared to $55.06 billion in November 2023, mainly due to …

India’s Trade Deficit Widens to Record as Gold Demand Soars
Top News
1 week, 1 day ago

India’s Trade Deficit Widens to Record as Gold Demand Soars

Live Mint  

-- India’s trade deficit expanded to a record high in November, as the nation’s import bill ballooned, particularly due to a rise in gold shipments. The gap between exports and imports stood at $37.8 billion in November, trade ministry data showed Monday, much higher than the $23 billion deficit forecast by economists in a Bloomberg survey. A widening trade deficit …

Indian rupee to face renewed pressure as US yields climb
1 week, 2 days ago

Indian rupee to face renewed pressure as US yields climb

Live Mint  

By Nimesh Vora MUMBAI, Dec 16 - The Indian rupee, having witnessed slight relief late last week, is likely to come under renewed strain on Monday on the back of a further rise in U.S. Treasury yields. "With inflation remaining sticky, and President-elect Trump looking to strengthen the U.S. growth performance, the Fed is set to signal a more cautious …

Rupee hits new low of 84.88 against USD
1 week, 5 days ago

Rupee hits new low of 84.88 against USD

New Indian Express  

The rupee is expected to trade near 84.5 against the dollar by end December. A strong dollar continues to create a depreciating bias for currencies globally and is likely to sustain FPI outflows from Indian markets in the near term. As a result, the 10Y UST yield has surged by 71bps between October and November, while the dollar index has …

Rupee takes a dive, more turbulence in 2025
1 week, 6 days ago

Rupee takes a dive, more turbulence in 2025

Live Mint  

What triggered the rupee’s recent fall? The Indian rupee breached a record low of 84.85 per dollar this week and briefly tested 85.06-per-dollar levels as outgoing Reserve Bank of India governor Shaktikanta Das’s term ended on Tuesday. However, increasing geopolitical uncertainty, attractive US government bond yields, cheaper crude oil prices and heavy foreign institutional investor outflow from domestic equities further …

Rupee's slide: What it means for economy, markets, and you
3 weeks ago

Rupee's slide: What it means for economy, markets, and you

India Today  

The rupee’s recent tumble to a record low of 84.73 against the US dollar has raised concerns about its impact on the economy and people’s daily lives. Although the rupee has recovered slightly today due to gains in the Chinese yuan, the recent drop reflects a confluence of global and domestic factors, creating ripple effects that extend beyond currency markets. …

Rupee poised for some relief on softer dollar, portfolio flows
1 month ago

Rupee poised for some relief on softer dollar, portfolio flows

Live Mint  

By Jaspreet Kalra MUMBAI, Nov 25 - The Indian rupee may log mild gains on Monday helped by a pullback in the U.S. dollar and portfolio inflows on account of the rebalancing of MSCI's global equity indexes. The dollar index rose to its highest level in two years on Friday but dipped 0.5% at Monday's market open to 106.9 after …

India’s current account deficit to remain manageable in FY25, Rupee to remain in pressure: Bank of Baroda
1 month, 1 week ago

India’s current account deficit to remain manageable in FY25, Rupee to remain in pressure: Bank of Baroda

Live Mint  

New Delhi, November 15 : India's current account deficit will remain within a manageable range for both FY25 and FY26, largely due to muted oil prices that are expected to support the country's external financial position, projected a recent report by Bank of Baroda. Despite global market volatility, the report stated that steady oil prices at current levels are a …

INR vs USD: Indian National Rupee hits record low of 84.38 against the US Dollar; Will it depreciate further?
1 month, 2 weeks ago

INR vs USD: Indian National Rupee hits record low of 84.38 against the US Dollar; Will it depreciate further?

Live Mint  

The Indian rupee hit a record low on Monday against the US dollar, reflecting broader weakness among Asian currencies under pressure following Donald Trump’s victory in the U.S. elections. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.05% at 105.05, near the four-month peak achieved last week following Trump’s win. …

Rupee plunges to all-time low of 84.38 against US dollar
Trending News
1 month, 2 weeks ago

Rupee plunges to all-time low of 84.38 against US dollar

India Today  

The rupee hit a record low against the US dollar on Monday, as concerns surrounding the recent victory of Donald Trump in the US elections put Asian currencies under pressure. FOREIGN INVESTORS PULL MONEY FROM INDIAN STOCKS Foreign investors have been offloading Indian stocks at a notable pace, adding further pressure on the rupee. Market experts say the rupee could …

India's current account deficit gap widens in April-June: RBI
2 months, 3 weeks ago

India's current account deficit gap widens in April-June: RBI

Hindustan Times  

India's current account deficit widened on-year in the April-June quarter, largely due to a higher merchandise trade deficit, the central bank said on Monday. The Reserve Bank of India reported a current account deficit of $9.7 billion for April-June, driven by a $65.1 billion merchandise trade deficit. The current account deficit stood at $9.7 billion, or 1.1% of the GDP, …

Is the spike in India’s trade deficit a worry?
3 months ago

Is the spike in India’s trade deficit a worry?

The Hindu  

The story so far: After a positive start to goods exports in the first quarter of 2024-25, there has been a blip in momentum. On the exports front, 18 of India’s top 30 segments recorded growth in July and 19 in August, but the big-ticket sectors like petroleum, and gems and jewellery, have tanked significantly. While gems and jewellery exports …

August’s record gold influx lifts import bill to all-time high
3 months, 1 week ago

August’s record gold influx lifts import bill to all-time high

The Hindu  

India’s goods exports shrank 9.32% to $34.71 billion in August, while the import bill expanded 3.3% to an all-time high of $64.36 billion, fuelled by a doubling in gold imports to a record $10.1 billion. On the surge in gold imports, the top trade official pointed to plausible factors such as the recent reduction in import duty from 15% to …

Indian Rupee's stability and low cost makes it attractive for carry trade, Bank of America says
6 months, 2 weeks ago

Indian Rupee's stability and low cost makes it attractive for carry trade, Bank of America says

Hindustan Times  

The Indian rupee is stable and inexpensive compared to its emerging market peers, making it a favorite for carry traders, according to Bank of America Corp, Bloomberg reported. Foreign exchange A carry trade is when a foreign exchange trader borrows money in a currency from a country with low-interest rates and converts the borrowed amount into another currency from a …

Welcome bounty: On the RBI’s ₹2.11-lakh-crore transfer to the Union government
7 months ago

Welcome bounty: On the RBI’s ₹2.11-lakh-crore transfer to the Union government

The Hindu  

The decision by the Reserve Bank of India’s board to transfer a record surplus of almost ₹2.11 lakh crore to the Union government for 2023-24 will serve as a welcome shot in the arm for the new government when it presents its Budget in July. More than double the previous year’s ₹87,416 crore payout as well as the ₹1.02 lakh …

Rupee opens on flat note against U.S. dollar in early trade
7 months, 1 week ago

Rupee opens on flat note against U.S. dollar in early trade

The Hindu  

The rupee opened on a flat note against the U.S. dollar in early trade on Thursday, as the support from positive domestic equities was negated by sustained foreign fund outflows and elevated crude oil prices. Forex traders said the rupee remains under pressure due to ongoing elections as well as foreign fund outflows and the same shall subside once the …

Rupee rises 16 paise to 82.82 against U.S. dollar
10 months, 3 weeks ago

Rupee rises 16 paise to 82.82 against U.S. dollar

The Hindu  

The rupee appreciated 16 paise to 82.82 against the U.S. dollar in early trade on Friday supported by positive domestic equities, as the interim budget focused on higher capex and faster fiscal consolidation. Forex traders said the interim budget had a positive impact on the domestic currency as it highlighted a reduction in the fiscal deficit to 5.1% of GDP …

A cloudy horizon: The Hindu Editorial on trade data
1 year ago

A cloudy horizon: The Hindu Editorial on trade data

The Hindu  

From a rare upward swing this October, India’s goods exports retreated into contraction last month, dipping 2.8% from 2022 levels to touch $33.9 billion. Imports dropped 4.33% to $54.5 billion, cooling the merchandise trade deficit to $20.6 billion, almost a third below October’s record high. August’s goods trade deficit was moderated by nearly three billion dollars, with the overall export-import …

India's June quarter current account deficit narrows to 1.1 per cent: RBI
1 year, 2 months ago

India's June quarter current account deficit narrows to 1.1 per cent: RBI

Hindustan Times  

India's current account deficit narrowed to USD 9.2 billion or 1.1 per cent of GDP for the April-June period, the Reserve Bank said on Thursday. The net external commercial borrowings to India recorded an inflow of USD 5.6 billion in the quarter compared to an outflow of USD 2.9 billion a year ago, the RBI said The current account deficit, …

Explained: Why surging oil prices is bad for Indian rupee
1 year, 3 months ago

Explained: Why surging oil prices is bad for Indian rupee

India Today  

The Indian rupee could come under pressure and decline significantly in comparison to the US dollar, analysts have warned. Analysts quoted in a Reuters report fear that a combination of factors, including surging crude oil prices and a rally of the US dollar index, could lead to a significant decline in the Indian currency’s value. Oil on the boil Brent …

India’s goods trade deficit hits a 10-month high
1 year, 3 months ago

India’s goods trade deficit hits a 10-month high

The Hindu  

India’s foreign trade hit a fresh trough in August, with goods exports shrinking for the seventh successive month, services exports estimated to have dropped for the first time in well over a year, and the goods trade deficit hitting a 10-month high. The merchandise import bill for August dropped 5.23% year-on-year to $58.64 billion, but was 10.85% higher than July’s …

India's Campaign To Boost Rupee In Cross-Border Payments Gets Off To A Tepid Start: Report
1 year, 5 months ago

India's Campaign To Boost Rupee In Cross-Border Payments Gets Off To A Tepid Start: Report

ABP News  

In cross-border payments, India’s year-old campaign to boost the role of rupee has made little progress, citing people privy to the development news agency Bloomberg reported on Friday. The Reserve Bank of India has allowed more than a dozen banks to settle trades in rupees with 18 countries since last year and is encouraging big oil exporters such as the …

Cash-strapped Pakistan slashes trade deficit by 43% in FY 23: Report
1 year, 5 months ago

Cash-strapped Pakistan slashes trade deficit by 43% in FY 23: Report

India TV News  

Cash-strapped Pakistan has reportedly slashed its trade deficit by a staggering 43 per cent to USD 27.55 billion in the fiscal year 2023. In the previous fiscal year 2022, the trade deficit had widened to a daunting USD 48.35 billion, causing concern about the country’s economic stability, The Express Tribune newspaper reported. Ismail Iqbal Securities head of research, Fahad Rauf, …

Fresh data rejigs drag down 2022-23 export-import tally by $3 billion
1 year, 7 months ago

Fresh data rejigs drag down 2022-23 export-import tally by $3 billion

The Hindu  

India’s goods trade numbers for February and March 2023 have been revised by over $10 billion from initial estimates, and the overall export-import figures for last year have been scaled down by around $3 billion dollars each, with experts flagging petroleum shipments as the main driver for the extraordinarily high revisions of recent export data. The month’s import bill was …

India FY23 exports defy global turmoil to hit record high
1 year, 8 months ago

India FY23 exports defy global turmoil to hit record high

Live Mint  

In a year of uncertainties worldwide, India exported a record $447 billion worth of goods in FY23, up about 6% from the previous year, commerce ministry data showed. At the same time, goods imports rose over 16% to touch $714 billion, widening the goods trade deficit to highest ever mark of $267 billion against the previous year’s $191 billion. “Although …

Centre aims to internationalise rupee in foreign trade. Know the plan
1 year, 8 months ago

Centre aims to internationalise rupee in foreign trade. Know the plan

Hindustan Times  

Union commerce and industry minister Piyush Goyal on Friday announced the Foreign Trade Policy 2023, breaking the tradition of setting a five-year goal and adopting a ‘long-term’ focus. Internationalisation of Rupee refers to the process of increased cross-border transaction of Indian currency, especially in import-export trades followed by other current account transactions and then capital account transactions. The effort to …

India ready for rupee trade with countries facing currency crises: Commerce Secretary
1 year, 8 months ago

India ready for rupee trade with countries facing currency crises: Commerce Secretary

The Hindu  

Commerce Secretary Sunil Barthwal on March 31 said India is ready to trade in Indan Rupee with countries which are facing currency failure or have dollar shortage. Speaking after the unveiling of Foreign Trade Policy 2023 which seeks to increase India's exports to $2 trillion by 2030, the Secretary also said the government is focusing on strengthening the rupee payment …

India aims for $2trn exports by 2030 with new Foreign Trade Policy 2023
1 year, 8 months ago

India aims for $2trn exports by 2030 with new Foreign Trade Policy 2023

Live Mint  

The government released the Foreign Trade Policy 2023 on Friday, which aimed to increase the country's exports to USD 2 trillion by 2030. During a media briefing on the recently launched FTP 2023, Director General of Foreign Trade Santosh Sarangi mentioned that unlike the previous practice of announcing 5-year FTP, the new policy does not have an end date and …

Exports fell 8.8% in February, but trade deficit also shrank over 7%
1 year, 9 months ago

Exports fell 8.8% in February, but trade deficit also shrank over 7%

The Hindu  

Tentative global demand pulled India’s goods exports down 8.8% in February to $33.9 billion, while imports fell 8.2% from a year ago to $51.31 billion, according to Commerce Ministry estimates released on Wednesday. The merchandise trade deficit during February 2023 fell 7% to $17.43 billion, slightly higher than January’s $16.56 billion deficit, which in turn was the lowest in at …

Budget 2023 and Business News Live Updates: India Better Off Than Many Global Economies, Says Gita Gopinath
1 year, 11 months ago

Budget 2023 and Business News Live Updates: India Better Off Than Many Global Economies, Says Gita Gopinath

News 18  

India Better Off Than Many Global Economies, Needs To Work On Labour Markets And Land: Gita Gopinath IMF Deputy Managing Director Gita Gopinath has cautioned that India needs to work on labour markets and land, even as she hailed the country for doing better than many global economies, news agency IANS reported. Lastly, I believe that the upcoming Union Budget …

DC Edit | Economic data spreading cheer, jobs still a concern
1 year, 11 months ago

DC Edit | Economic data spreading cheer, jobs still a concern

Deccan Chronicle  

If you placed all highlights of the economic data, released in the last few days both in India and the United States of America, as dots on a canvas to draw a picture, it would make for a happy smiley face. The country’s retail inflation eased to a one-year low of 5.72 per cent in December 2022, from 5.88 per …

CAD set to widen, inflation to remain high: Deloitte report
1 year, 11 months ago

CAD set to widen, inflation to remain high: Deloitte report

Live Mint  

India’s current account deficit is set to worsen going forward led by higher imports and slower exports, Deloitte warned in a report shared exclusively with Mint. The report pointed out that the pressure on the rupee is “worrisome” and that India may want to consider restricting imports of non-essential items or scouting for cheaper import sources. It is the only …

Outlook 2023: Here’s why rupee will depreciate against dollar in H1
1 year, 11 months ago

Outlook 2023: Here’s why rupee will depreciate against dollar in H1

Live Mint  

Indian rupee emerged as Asia’s worst performing currency in 2022 depreciating around 11.5% against the US Dollar on strength in the greenback and capital outflows by foreign investors. We expect Rupee to depreciate against the US Dollar in H1 2023 as the global inflation and economic concerns continue to dent risk sentiments. Most global institutions such as the IMF and …

Indian rupee ends 2022 as worst-performing Asian currency
1 year, 11 months ago

Indian rupee ends 2022 as worst-performing Asian currency

Live Mint  

The Indian rupee ended 2022 as the worst-performing Asian currency with a fall of 11.3%, its biggest annual decline since 2013, as the dollar rocketed on the U.S. Federal Reserve's aggressive monetary policy stance to tame inflation. Heading into 2023, market participants believe the rupee would trade with an appreciation bias, finding relief from easing commodity prices and hopeful of …

Trade tumult: The Hindu Editorial on shrinking exports
2 years, 1 month ago

Trade tumult: The Hindu Editorial on shrinking exports

The Hindu  

For the first time since February 2021, India’s goods exports shrank this October, dropping 16.7% from last year to slip below $30 billion after a 20-month-streak above that mark. While the Government acknowledged forecasts of a slump in global shipments growth to just 1% in 2023, it attributed the October trade blip to a seasonal Deepavali effect — production dips …

With the rupee under pressure, what next
2 years, 2 months ago

With the rupee under pressure, what next

The Hindu  

Even without getting into any quantitative measure of vulnerability, it is quite clear that the rupee is under pressure. In the last one year, it depreciated by over 10%, has crossed the psychological marker of ₹80 to a dollar, and India’s foreign exchange reserves are down by more than $100 billion. Arguably, the pressure on the rupee has softened, if …

Currency pressure: The Hindu Editorial on the rupee’s depreciation against the dollar
2 years, 3 months ago

Currency pressure: The Hindu Editorial on the rupee’s depreciation against the dollar

The Hindu  

The rupee is yet again facing renewed pressure, along with major peers, as the dollar continues to strengthen in the wake of the Federal Reserve’s latest jumbo 75 basis points interest rate increase and the U.S. central bank’s unequivocal message that it remains squarely focused on taming inflation. The Indian currency weakened past the 81-mark against the dollar for the …

Indian rupee showed more resilience than other currencies in recent years: Goyal
2 years, 3 months ago

Indian rupee showed more resilience than other currencies in recent years: Goyal

The Hindu  

Indian rupee has shown more resilience than most of the other currencies in recent years and the compounded average growth rate of depreciation is lower as compared to pre-2014, Minister of Commerce and Industry Piyush Goyal has said. I am happy that the Indian rupee has shown more resilience than most of the currencies in recent years," Mr. Goyal said …

Exports remain flat in August; trade deficit more than doubled to 28.68 billion: Commerce Ministry
2 years, 3 months ago

Exports remain flat in August; trade deficit more than doubled to 28.68 billion: Commerce Ministry

Firstpost  

Trade deficit widened to 125.22 billion in April-August this fiscal as against USD 53.78 billion in the same period last year. Commerce secretary B V R Subrahmanyam said that the country’s overall exports are expected to cross USD 450 billion during the current fiscal New Delhi: India’s exports contracted by 1.15 per cent to USD 33 billion and trade deficit …

Policy cues from a depreciating rupee
2 years, 3 months ago

Policy cues from a depreciating rupee

Live Mint  

In the absence of capital flows, the exchange rate is largely determined by the current account of balance of payments. Capital inflows add to the supply of foreign exchange and a strong inflow can lead to the domestic currency getting stronger despite a current account deficit. The purchasing power parity theory, which states that the external value of the currency …

Trade worries: The Hindu Editorial on the expanding trade and current account deficits
2 years, 4 months ago

Trade worries: The Hindu Editorial on the expanding trade and current account deficits

The Hindu  

July’s provisional trade data should trigger early warning signals among policymakers, as the first year-on-year contraction in exports in 17 months, albeit marginal, and a 44% jump in imports, sharply widened the trade deficit to a third successive monthly record. While the Commerce Ministry has sought to explain away the 0.8% slide in last month’s exports as largely being a …

Rupee faces risk of further decline to 82 vs USD in near term: Experts
2 years, 5 months ago

Rupee faces risk of further decline to 82 vs USD in near term: Experts

Live Mint  

Indian rupee may further depreciate to 82 to a dollar in the near term due to widening of trade deficit and expected aggressive rate hike by the US Fed later this week to tame record high inflation, economists said. Economists are of the opinion that the rupee after touching a life-time low may settle around 78 to a dollar by …

Despite pressures, the Indian rupee’s remarkable resilience
2 years, 5 months ago

Despite pressures, the Indian rupee’s remarkable resilience

The Hindu  

The Indian rupee has depreciated by around 7% against the U.S. dollar, since the start of the year, in response to various domestic and global factors. Specifically, a widening current account deficit, persistent risk-off sentiment as a result of geopolitical tensions, ‘a strengthening dollar index, and continuous sell-off by foreign portfolio investors have all put pressure on the rupee’. Elevated …

Costlier Oil Prices, Tight Financial Conditions, FPI Outflows Responsible For Rupee Fall: Sitharaman
2 years, 5 months ago

Costlier Oil Prices, Tight Financial Conditions, FPI Outflows Responsible For Rupee Fall: Sitharaman

News 18  

Finance Minister Nirmala Sitharaman on Monday said global factors, such as a surge in crude oil prices and tight financial conditions, along with foreign portfolio investment outflows, are responsible for the fall in the exchange rate of the Indian rupee against the US dollar. “Global factors such as the Russia-Ukraine conflict, soaring crude oil prices and tightening of global financial …

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