us dollar hedging

GOI should let the economy adjust to new energy market realities, and raise pump prices. Lower domestic fuel consumption will also mean less dollar demand & help shore up the rupee

The Indian rupee hit a historic low against the US dollar, pressured by corporate demand and soaring crude oil prices. Authorities are considering measures like incentivizing foreign currency deposits and easing tax rules for overseas investors to boost dollar inflows.

The Indian rupee hit a new low against the US dollar, pressured by rising oil prices and external debt. Analysts link the decline to the US-Iran conflict, which has boosted crude oil costs and strained India's economy. While the RBI and government are intervening, markets anticipate potential interest rate hikes to stabilize the currency and manage inflation.

PM Modi has called on citizens to adopt measures aimed at conserving foreign exchange, as the surge in oil prices triggered by the Iran conflict has intensified pressure on the rupee and strained India’s foreign exchange reserves.

RBI is not alone in repatriating its gold reserves. Several central banks like France’s Banque de France, Germany’s Deutsche Bundesbank, Serbia’s National Bank have done the same - buy why?

The Indian rupee is facing significant pressure, weakening against the US dollar due to soaring crude oil prices driven by Middle East geopolitical tensions and persistent foreign fund outflows. Despite India's robust economic growth, the currency's slide continues as the Reserve Bank of India intervenes to curb volatility rather than target a specific exchange rate.

President Trump's China visit occurs amid a US-Iran stalemate, with analysts suggesting Xi Jinping holds more leverage. Many in Beijing view Trump as a symptom of liberal democracy's instability and American decline, validating Xi's "rise of the East" worldview. This perception of US weakness could lead China to miscalculate and test Washington.

While the US and Israel engaged in conflict with Iran, China quietly leveraged the situation to expand its influence. By positioning itself as a diplomatic alternative and stabilizing energy supplies, Beijing benefited from a weakened American strategic position and growing uncertainty about US reliability among allies.

But Vivek’s rise, if things go according to plan he might become the third Indian-origin governor of an American state after Bobby Jindal and Nikki Haley, is not just a litmus test of an Indian-American’s success story in US politics. It is a test of how far the MAGA tent will accommodate a brown non-Christian man and also how far an Indian-American can go in Trump’s America.

Today is Akshaya Tritiya, an auspicious day in the Hindu calendars, believed to bring lasting prosperity and good fortune. Buying gold on this day is considered auspicious. Experts believe that returns on gold over the last few years reinforce its role as a long-term wealth preserver.

The sudden nature of the measures and tighter controls risk creating an impression that India may be stepping back from its efforts to deepen integration with global financial markets.

Indian IT firms anticipate a largely uneventful March quarter, with muted growth expected due to geopolitical uncertainty and early GenAI impacts. Despite a depreciating rupee boosting earnings, deal momentum faces potential pressure from ongoing conflicts. Companies are likely to remain cautious with their outlooks for the upcoming fiscal year.

US senators Elizabeth Warren and Sheldon Whitehouse are urging the CFTC to investigate suspicious oil trading activity preceding President Trump's Iran conflict announcements. They highlighted significant, well-timed trades on March 23 and April 7, suggesting potential insider trading based on non-public government information.

Fundamentally, foreign exchange reserves tell us about a country’s ability to service its external debt. The more robust the cover, the better a country’s position of economic strength. So how strong is India placed in terms of foreign exchange reserves?

Gold and silver prices in India are predicted to stay strong in fiscal year 2026-27. Global uncertainty and demand for safe-haven assets will support prices. However, high interest rates could cap significant gains. Central bank purchases and industrial demand will also provide support. Volatility is expected to continue.

Closes 173p Up At 93.1 After RBI Reins In Speculation, $ Positions

The Reserve Bank of India has tightened its grip on currency markets by imposing new restrictions on rupee-linked derivatives. Banks are now barred from offering non-deliverable contracts to both residents and non-residents, aiming to curb offshore speculation. The RBI also reinforced rules for hedging genuine risks, signaling a decisive move to regain control over rupee price discovery amidst global uncertainties.