Nothing has consumed more ‘little grey cells’ than discussions on the United States presidential election, the contenders and their impact on the fate of the global economy after this "mother of all US elections."
Even with the election now out of the way, economic uncertainty and volatility are here to stay, given fractures in society (and thus the polity) across the developed world.
The focus thus far has been on foreign portfolio flows, interest rates, the policy stance of central banks and at times their liquidity management.
However, post the US polls, an important variable that will likely come under the spotlight is the Indian rupee’s exchange value and the US election might prove to be a game-changer for forex markets.
The rupee may well have to bear a greater burden of adjustment to global economic volatility from here on, as emerging markets (EMs) get into the crosshairs of a gyrating dollar and US-China policy tangles.
The Reserve Bank of India (RBI) has done a remarkable job in keeping the currency steady in times of geopolitical and geo-economic upheaval.
The rupee hit a series of record lows in October. In November, it has already depreciated 0.36% against the dollar, prompting intervention by RBI, which has managed to keep it one of the least volatile major Asian currencies.
The rupee’s near-term volatility measured through the 7-day daily realized volatility was just 0.1%, the lowest in at least 30 years.
Might all that change with a change in the White House? The dollar is at its strongest in recent memory.
Bu hikaye Mint Mumbai dergisinin November 14, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Mint Mumbai dergisinin November 14, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Why Crypto Mania Is Reaching New Heights
Donald Trump's victory has a flavour of revenge—not just for the man but also for crypto bros and their assets of choice.
Trump Picks Musk, Ramaswamy For Government Efficiency Effort
President-elect Donald Trump picked Tesla CEO Elon Musk and biotech company founder Vivek Ramaswamy, a former Republican presidential candidate, to lead an effort to cut spending, eliminate regulations and restructure federal agencies.
Donald Trump Is Recruiting A Team Of China Hawks. So Why Is Beijing Relieved?
With the expected appointments of Sen. Marco Rubio and Rep. Mike Waltz to cabinet positions, President-elect Donald Trump is putting together what some China hawks call a tough-on-China "dream team."
Small loans can spell big trouble for Indian banks
Watch out for signs of stress in India's micro-finance sector. Bad loans, even if small, extract a cost by way of reduced profits as well as higher interest charges on credit across the board
India should redesign its public safety signs to save lives
Mind studies suggest that the use of photographs depicting fear could trigger safe behaviour
Burberry is looking like a fine acquisition target this winter
This brand known for its chequered story can surely perform better
The Washington Consensus has collapsed and it won't be missed
The combination of free-market capitalism and electoral democracy that it promoted has failed to serve everyone equitably
India's statistics ministry has a new sense of purpose
The flurry of activity to get India's statistics right is laudable but we await regulatory design clarity
The rupee could suffer collateral damage if a currency war ensues
The US election is a game-changer for foreign-exchange markets that will test the rupee and RBI
PASSIVE INCOME STRATEGIES FOR MSMEs: SECURE GROWTH, STABILITY IN UNCERTAIN TIMES
I Forging diverse passive income streams takes time, but steady approach builds a strong base