Re breaches 85 mark
Financial Express Bengaluru|December 20, 2024
Barclays strategist sees it falling further to 87 by next year end
DHARAMRAJ DHUTIA

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.

Meanwhile, Barclays Head of FX and EM Macro Strategy Asia, Mitul Kotecha, sees the rupee weakening further to 87 by the end of next year, despite temporary measures to arrest its decline. He, however, said the currency is expected to continue outperforming its Asian peers.

Diese Geschichte stammt aus der December 20, 2024-Ausgabe von Financial Express Bengaluru.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der December 20, 2024-Ausgabe von Financial Express Bengaluru.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS FINANCIAL EXPRESS BENGALURUAlle anzeigen
Financial Express Bengaluru

Maharashtra portfolios: CM keeps home; Pawar gets finance

MAHARASHTRA CHIEF MINISTER Devendra Fadnavis on Saturday allocated portfolios to his council of ministers, retaining the crucial Home department with him.

time-read
1 min  |
December 22, 2024
Financial Express Bengaluru

Film fest raises toast to women, Kerala hopes industry follows

When she set out to direct her first feature film, Adithya Baby had an army of university classmates as her cast and crew.

time-read
2 Minuten  |
December 22, 2024
Financial Express Bengaluru

AAP rejects claims of nod to prosecute Kejriwal

AAM AADMI PARTY leaders in Delhi, including chief minister Atishi, on Saturday rejected claims that Lieutenant Governor VK Saxena has granted sanction to the Enforcement Directorate to prosecute party supremo Arvind Kejriwal in the alleged excise policy scam.

time-read
1 min  |
December 22, 2024
Financial Express Bengaluru

US shutdown averted, with funding bill rushed by Senate

Gets overwhelming approval in the House of 366-34

time-read
1 min  |
December 22, 2024
Financial Express Bengaluru

Research on altering fundamental DNA, protein structures could lead to synthesis of lethal organisms

Research on altering fundamental DNA, protein structures could lead to synthesis of lethal organisms

time-read
3 Minuten  |
December 22, 2024
Financial Express Bengaluru

How to repair the planet? An answer hides in plain sight

What if we're looking at environmental problems the wrong way? What if we tackled them as a whole, instead of individually?

time-read
2 Minuten  |
December 22, 2024
Financial Express Bengaluru

Battle for Mont Choisy

A Sunday showdown at the 2024 AfrAsia Bank Mauritius Open golf finale

time-read
4 Minuten  |
December 22, 2024
Financial Express Bengaluru

Big blows for the Constitution

Congress but Indira Gandhi apologized and vowed that Emergency would never be repeated.

time-read
2 Minuten  |
December 22, 2024
Financial Express Bengaluru

Don't rot your brain

Oxford's Word of the Year 2024 is 'brain rot', the 'supposed deterioration of a person's mental state'. Know how we are frying our brains, and how to check it

time-read
1 min  |
December 22, 2024
Financial Express Bengaluru

Grab, pay, and go

From laddus to innerwear to cars and coins, vending machines around the world are surprising shoppers

time-read
3 Minuten  |
December 22, 2024