
dynamics helped the Fed turn significantly dovish, starting the cycle with a 50-bps cut. However, with economic data continuing to be resilient and Trump 2.0 being expected to stoke inflation, the rate-cut cycle is likely to remain shallow. In addition, poor growth dynamics in Europe is expected to keep the ECB dovish. This divergence and expected US policy changes are expected to drive US dollar strength over the foreseeable future and be net negative for EM (emerging market) currencies, though the impact is expected to be unequal. The Chinese yuan, euro, Mexican peso are expected to bear most of the brunt of the new Trump tariffs. The RBI over the past couple of years has ensured a stable regime for India's forex and rates markets and we largely expect this trend to continue into the next year.
The key question for India's forex markets will be how the government and RBI react to even greater weakness of the yuan, given India's large trade deficit with China. That said, in our view, the rupee will remain less volatile compared with other EM currencies.
Esta historia es de la edición December 12, 2024 de Financial Express Bengaluru.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición December 12, 2024 de Financial Express Bengaluru.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
BluSmart to rejig operations
Delinking pact with Gensol Engineering
Academic ceasefire
Despite US' initiative, the conflict will take a long time to give way for lasting peace
Cutting tariffs on imports from US will hurt us: Medical device makers
VOICING CONCERNS OVER the likely reduction in tariffs on the medical devices being imported from the US, domestic manufacturers have said such a move will give \"undue advantage\" to foreign players and requested the government to have a rethink on the matter.
Urea Plant in Assam
TO BOOST UREA production in the eastern and northeastern region and reduce imports of the key crop nutrient, the Union Cabinet on Wednesday approved the establishment of a brownfield ammonia-urea complex at Brahmaputra Valley Fertiliser Corporation (BVFCL) in Namrup, Assam.
Trump-branded offices make India foray
THE TRUMP ORGANIZATION has forayed into Indian commercial real estate with an office and retail project in Pune.
GCCs See 10% Salary Jump in a Year
GLOBAL CAPABILITY CENTRES (GCCs) in the country are poised for a 9.8% salary growth over the next 12 months, as organisations adapt to evolving talent demands and navigate macroeconomic challenges, a report said on Wednesday.
India important market for sales, R&D, says HP CEO
HP CEO Enrique Lores said the company is keenly looking at India to establish a broader presence.
EU Plans to Cut Steel Imports by 15% as Trump Tariffs Bite
The European Union will tighten steel import quotas to reduce inflows by a further 15% from April, a senior EU official said on Wednesday, in a move aimed at preventing cheap steel flooding the European market after Washington imposed new tariffs.
Benchmark indices extend gains for third straight day
Investors wealth reclaimed ₹400 L-cr mark after a month
Musk's xAI startup joins $30-bn Microsoft-BlackRock AI fund
MICROSOFT CORP., the biggest backer of Sam Altman's OpenAI, and BlackRock Inc., which has an executive on the artificial intelligence startup's board, are joining forces with one of its chief rivals.