Friday saw a decline in the majority of Asian currencies as the dollar held onto its overnight gains as signals of China’s ongoing economic deterioration mostly overshadowed hopes for a reduction in U.S. interest rates and inflation. China’s purchasing managers index (PMI) data through February indicated a slow recovery in economic activity, suggesting that the…
The Indian rupee rose and fell last week but ended unchanged. In the face of dollar inflows, it has outperformed Asian currencies. The RBI shocked the market by announcing a 10% ICRR to curb inflation and eliminate excess liquidity while maintaining the other rate with a “withdrawal of accommodative” policy. Similar to its Asian counterparts,…
With a strong loss of nearly 1.00% in May, the Indian Rupee underwent severe weakening and came under pressure. It’s interesting that this reduction took place despite the mind-blowing $5 billion in inflows. This begs the question of whether the INR could be impacted by the present downturn in Asian currencies. Let’s look at the…
Before today’s scheduled bimonthly policy review of the Reserve Bank of India, the rupee opened slightly weaker against the US dollar. At the start, the dollar was trading at 82.59. The domestic currency increased 0.04 percent to 82.58 per dollar in the morning session from its previous close of 82.55 per dollar. The euro opened…
