Forex kitty in a sustained downtrend Over the past many weeks the forex kitty has been largely in a downtrend, trimming foreign exchange reserves and drawing more attention from markets and policymakers. This steady decline matters because reserves are a key buffer against currency shocks and external pressures. What’s driving the reserve decline? Several factors … Read more
Healthy services exports and remittances likely to keep CAD modest in 2025-26 Malhotra noted that a strong performance in services exports, together with robust remittance inflows, should help keep the current account deficit (CAD) modest during 2025-26. This combination can provide a stabilising cushion for the balance of payments as the economy navigates external pressures. … Read more
Rate Cut Sparks Ripple Effects in the Currency Market The central bank’s first rate cut in six months immediately shook up the currency market. Forex traders reacted quickly, pricing in a mix of outcomes as liquidity measures and persistent economic pressures collide. Why the market moved A rate cut typically reduces domestic yields, which can … Read more
Rupee slips after RBI monetary policy announcement The Indian rupee weakened following the Reserve Bank of India’s monetary policy announcement, slipping to 90.05 against the US dollar. This marked a decline of 16 paise from the previous close of 89.89. Market movement at a glance Opening/previous close: 89.89 Latest level: 90.05 Change: -0.16 (16 paise) … Read more
Rupee Firms, Touches 89.69 Against US Dollar The Indian rupee opened at 89.85 against the US dollar in the interbank foreign exchange market and strengthened further in early trade, touching 89.69. This marks a gain of about 20 paise from the previous session’s close. Intraday Movement at a Glance Opening rate: 89.85 per US dollar … Read more
The currency market found some relief on signs of a softer dollar after weaker-than-expected US ADP payroll numbers, while talk of possible Reserve Bank intervention helped steady the local unit. Traders said the combination reduced near-term volatility and eased one-sided moves against the currency. Why the dollar softened The US ADP payroll report, which measures … Read more
Undervalued currency may be a magnet for returning investors Analysts note that when a currency becomes sharply undervalued, history shows it often draws foreign investors back into local assets. That renewed demand can cushion the currency and limit further falls, even after a period of weakness. Why undervaluation attracts capital A deeply discounted exchange rate … Read more
The rupee slid to an all-time low of 90.42 on Thursday, extending an eight-month decline that has made it Asia’s worst-performing currency. The move highlights growing pressure on the currency and raises fresh questions about policy responses and economic fallout. What happened Trading pressures pushed the rupee past the previous record, reflecting sustained weakness over … Read more
Rupee Slides to Become Asia’s Weakest Currency The Indian rupee has fallen about 5.5% year-on-year, making it the weakest-performing currency in Asia over the past 12 months. The decline reflects a mix of global and domestic factors that are reshaping investor sentiment and the trade outlook. What’s driving the weakness? Stronger dollar: A firmer US … Read more
The Indian rupee slipped further against the US dollar and touched a previous all-time low of 90.29 on Wednesday. The move reflects continuing pressure on the currency amid a mix of global and domestic factors. Why the rupee weakened Several familiar forces usually push the rupee lower. Analysts point to a combination of: Strong dollar … Read more