THE RUPEE ENDED at another all-time low of ₹85.08 to a dollar on Thursday, after touching a low of ₹85.09, as the US Federal Reserve's forecast of fewer rate cuts pushed the dollar index to a two-year high. The dollar index, which measures the greenback against a basket of six major currencies, was at 108.07 and the yield on the 10-year benchmark US Treasury note rose to 4.52%.
Market participants said that the intervention was nominal from the Reserve Bank of India (RBI) in the forex market, indicating that the central bank wants to slow down the depletion in the forex reserves.
In the last two months, India's foreign exchange reserve has reduced by over $46 billion.
As per RBI data, the forex reserves shrank to $654.857 billion as on December 6 from $704.885 billion on October 4.
"The hawkish tilt from the Fed sent traders heavily dialing back in easing expectations of rate cuts next year and in turn sparked a broad dollar rally, sending all currencies into a tailspin. This seems like an extended pause from the FOMC and no change in rates in the first half. The higher for longer syndrome seems to be back," said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors.
This story is from the December 20, 2024 edition of Financial Express Chennai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 20, 2024 edition of Financial Express Chennai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
These Men in Blue break boundaries for the disabled
ON JANUARY 7 this year, a 17-member Indian cricket team was given a warm send-off for a four-nation Champion Trophy tournament in Sri Lanka.
Reliance steps up distribution push as FMCG vertical grows
THE FAST-MOVING CONSUMER goods (FMCG) arm of Reliance, which has touched ₹8,000 crore in topline for the first nine months of FY25, will expand distribution in north and west India, sources have told FE.
Comfortable design for 24/7 wear
It tracks fitness, sleep, stress & other key health vitals
India-Oman FTA talks nearing completion
INDIA NOT SEEKING DUTY CONCESSIONS ON LIQUOR, CIGARETTES
The promise and perils of agentic AI
Guardrails are needed for its safe and responsible use
Kotak Mahindra Bank expects NIM to improve
FRESH SLIPPAGES IN Q3 DECLINE
Trade Partner Or Adversary?
India must think beyond China-Plus-One strategy as the world trade order is rapidly changing
Protesters storm court after it extends Yoon's detention
HUNDREDS OF SUPPORTERS of South Korea's arrested president, Yoon Suk Yeol, stormed a court building early on Sunday after his detention was extended, smashing windows and breaking inside, an attack the country's acting leader called \"unimaginable\".
Railways capital expenditure for FY26 may be pegged at ₹2.9L crore
\"THE RAILWAYS IS working on multiple fronts which require significant capital expenditure from the government.
Davos Turns Into Fortress
GIVEN THE HIGH-profile nature of the event, beginning Monday, the security is both discreet and visible and comprises snipers, drone jammers, regular frisking and checking and round-the-clock patrol.
