Rupee Surge
The Indian rupee’s surge to a two-month high on Thursday signals a broader shift in the global economic landscape, influenced not just by domestic factors but by international dynamics as well.
The Indian rupee’s surge to a two-month high on Thursday signals a broader shift in the global economic landscape, influenced not just by domestic factors but by international dynamics as well.
The minister said that a stable economy will propel India to become one of the top 3 economies in the world.
It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
With the Reserve Bank of India's Inter-Departmental Group having expressed the view that the rupee possesses the potential of evolving into a global currency in the wake of India's resilient economic growth amid global challenges, the potential of such a development is significant for India's economic growth and international standing.
According to RBI's latest data, India's foreign currency assets, the biggest component of the forex reserves, fell by USD 4.38 billion to USD 509.691 billion.
Most exit polls conducted by different organisations have given the BJP-led NDA full majority, even as opposition parties are dismissing these predictions.
The rupee rose to a two-week high of 69.36 against the US dollar, as compared to its Friday’s close of 70.23.
Meanwhile, the United States, President Donald Trump on Sunday accused China of breaking the negotiated trade deal draft and indicated toughening of his stand against China in a series of tweets.
"The rupee is under pressure as the trade tension escalated between US and China. Global markets are also under pressure hence the rupee is weakening. In coming sessions, volatility is expected to rise in the rupee as the date of election results approaches," said Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers.
China has threatened to take retaliatory measures if US President Donald Trump raises tariffs on USD 200 billion worth of goods ahead of the crucial 11th round of talks aimed at ending the trade war between the world's two largest economies.
