Rupee Falls To Lowest In Over A Year Against US Dollar, Breaches Key Level
- "Rupee weakness is due to two factors: fundamentals driven by higher oil prices and the pressure on the balance of payments and the rising yields in the West. Both act as potential sore points for the rupee," says Madan Sabnavis, chief economist of CARE Ratings. The recent run of solid US economic in contrast with a softer turn in European data has also lifted the US dollar to its highest for the year so far against the euro. The dollar also reached its highest since December against a basket of currencies. A firming US dollar has also been negative for some commodities like gold.
- Global crude prices hit their highest in more than three years as global supplies remained tight and the market awaited news from Washington on possible new US sanctions against Iran. US President Donald Trump has set a May 12 deadline for Europeans to "fix" the deal with Iran over its nuclear program or he would refuse to extend US sanctions relief for the oil-producing country. Brent crude futures added 31 cents to $75.18 a barrel.
- The Reserve Bank of India (RBI) last week announced purchase of sovereign bonds via open market operation (OMO). The RBI said it will buy Rs 10,000 crore of government bonds on May 17. "The RBI announced an OMO purchase on Friday which is mainly intended to sterilize the rupee liquidity taken out of the system due to forex intervention. However it could lift sentiment in rates market temporarily," says forex advisory firm IFA Global.
- Mr Sabnavis of CARE Ratings expects the rupee to remain volatile in the near future. "While oil may settle down in a month or so, the US interest rates will continue to remain high until such time that the US Federal Reserve does something decisively. We can expect volatility until such time RBI intervenes in the market at what it thinks would be the right rate," he said.
- On the domestic front, the key trigger would be the Karnataka polls on Saturday, the results of which will be out on next Tuesday, it added. (With Agency Inputs)
-
High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
The suspension of PERM processing at eight technology employers does not cancel existing H-1B visas. What it does is force a question many Indian families have been avoiding: is the US salary worth tying your career and family plans to one employer?
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
