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Indian Rupee Hits All-Time Low: What Does It Mean? 📉 Today, the Indian Rupee hit an all-time low against the US Dollar. 😱 This means that one US Dollar was trading at 84.76 rupees. Why is this happening? A few factors that are contributing to this: ● Geopolitical tensions: Ongoing global conflicts are making the US Dollar a safe haven currency. ● Economic slowdown: India's economic growth has been slowing down. India's GDP growth slowed to 5.4 percent year-on-year (YoY) in the July-September quarter of 2024, marking its 📉lowest level since March 2023. ● Rising inflation: High inflation 📈erodes the purchasing power of the Rupee. India's annual inflation rate surged to a 14-month high of 6.21% in October 2024, exceeding market expectations of 5.81%. ● Foreign investor outflow: Foreign investors💰 are pulling their money out of India.This brings their total outflow to Rs 1.14 lakh crore in 28 trading sessions. ● Widening trade deficit: India is importing more than it's exporting. These factors are interconnected and are collectively putting pressure on the Rupee. What does this mean for us? While this may not directly impact your daily life, it can have broader economic implications. For instance, it could lead to higher prices for imported goods. Let's hope the government takes steps to stabilize the currency and boost economic growth. #IndianEconomy #Rupee #USD #Inflation #Geopolitics #Economy #Finance

🗺️ Indian Rupee will Fall to ₹90 per Dollar 🇮🇳 According to the latest SBI Reports, "US Presidential Election 2024: How Trump 2.0 Impacts India’s and Global Economy," the return of #DonaldTrump could see the Indian Rupee depreciate by 8-10% against the US dollar 📊—though this decline is predicted to be temporary, with the rupee regaining strength over time. Why This Matters for India: 📈 Boost for Exports: A weaker rupee can enhance export competitiveness in sectors like textiles, manufacturing, and agriculture, potentially driving revenue growth. 📊 Inflationary Impact: But there's a trade-off—SBI estimates that every 5% rupee depreciation could add 25-30 bps to inflation. This means higher import costs, impacting prices on essential goods and services. Forecast: SBI anticipates a stable exchange rate range of Rs 87-92 after initial volatility, highlighting a controlled, short-lived impact on India's economy. As we look ahead, these economic dynamics underline the importance of global events for India’s domestic stability and growth trajectory. What’s your take on this possible currency shift? Share your thoughts! Praveen Kumar #Trump2024 #IndiaEconomy #GlobalEconomy #CurrencyImpact #TradeWars #ExportGrowth #Inflation #IndianRupee #EconomicForecast #SBIResearch #USIndiaRelations #Tariffs #Manufacturing #ITSector #PharmaIndustry

India is MASSIVELY Shorting The Dollar. WHY? India's strategic move to short the dollar is a crucial step in navigating economic problems. India's Central Bank has undertaken a significant strategy to short the dollar, fueled by rising economic concerns and a depreciating rupee. This move, involving a staggering $60 billion position, reflects the Reserve Bank of India's urgency to stabilize the domestic market amidst fears of a global economic downturn. Despite these efforts, the Indian rupee continues to hit new lows, indicating persistent weaknesses in the economy. With GDP growth slowing to just 5.4% in Q3 2024—the slowest in nearly two years—questions loom over India's economic sustainability, compounded by issues like excessive government spending and declining corporate profits. Furthermore, the shifts in consumer spending patterns post-pandemic and a notable deceleration in loan growth signal potential trouble ahead. The RBI's intervention in the non-deliverable forward market is one approach to prop up the rupee's value, yet it risks substantial losses if the dollar continues to strengthen. The interconnectedness of India's financial health with global market conditions underscores the need for a strategic approach. As speculators bet against the rupee, the RBI is tasked with stabilizing the currency in a challenging environment. What are your thoughts on India's approach to shorting the dollar? Share your insights in the comments! #Economics #BusinessStrategy #FinancialCrisis

Indian Rupee Under Pressure Amidst Economic Shifts As we navigate through mid-October, the Indian rupee remains under 84 to the dollar, holding near record lows with new foreign exchange outflows and a dynamic economic landscape in play. Key factors are influencing this trend, including consumer inflation and global monetary conditions, creating a complex scenario for market participants. 🔍 Inflation & Monetary Policy: Consumer inflation in India surged to 5.5% in September, surpassing expectations and rebounding past the Reserve Bank of India's (RBI) target of 4%. This shift has prompted markets to reassess the possibility of the RBI commencing its anticipated loosening cycle this year. Despite hawkish signals from the RBI, foreign currency outflows continue to exert downward pressure on the rupee. 🌎 Global Impact: Internationally, stubbornly high inflation in the United States has led to a less-dovish outlook for the Federal Reserve, reducing demand for riskier currencies, including the rupee. Furthermore, some investors are shifting focus towards China, betting that anticipated stimulus measures there may offer better returns. 📈 Bond Yields & Economic Growth: The yield on India’s 10-year government bond rose towards 6.7%, recovering from recent lows as hot inflation rekindled expectations of a hawkish stance from the RBI. Despite these pressures, India’s robust economic growth, demonstrated by strong PMIs and over 8% annual GDP expansion, provides a solid fiscal foundation that mitigates stress on domestic bonds. 🌿 Looking Ahead: As global and domestic factors continue to interplay, businesses and investors must stay informed and agile. India's strong economic performance offers a promising backdrop, even as inflationary pressures and global monetary policies affect currency and bond markets. The evolving landscape emphasizes the importance of strategic foresight and adaptability in navigating these economic shifts. 📊📈 #IndianEconomy #Inflation #RBI #Forex #nifty #sensex #stockmarketindia #usdinr #indianrupee

The Indian Rupee is dancing on the edge of a financial cliff. I call it a dance because we've been chest-thumping through the mountains about our economy. An interesting note - Foreign investors pulling out close to $1.4B from Indian markets Will India's GDP growth meet the Reserve Bank of India (RBI) 's 7.0% target? The World Bank how do you define "growth" when a currency hits near-record low, foreign investors are running away and people's buying power is shrinking. Does that corroborate with your employment growth projection? Just FYI below is the approx employment numbers of 2 companies owned by the richest in Asia, also listed in world's richest. Them being rich is not an issue, they actually are dominating most industries in the country. • Approx 347000 - Also a 10.8% reduction in workforce compared to the previous year due to cost-efficiency measures. • Approx 23,000 😀 Is 7% GDP growth real if ordinary Indians can buy less every month? #IndianEconomy #Currency #Investment #EconomicInsights #MarketUpdate #India #growth "USD/INR climbs ahead of Indian GDP data, Indian Rupee tumbles to near record low" https://lnkd.in/g7ijmNa8

Indian Rupee Hits Historic Low: What Does it Mean for You? 📉 The Indian Rupee has reached an all-time low, crossing 84 rupees per US dollar 🤯. But what's behind this depreciation, and how does it impact your wallet? 🤑 Causes of Depreciation: - Foreign portfolio investors pulling out of Indian stocks 💸 - Rising crude oil prices, increasing demand for US dollars ⛽️ Effects on the Economy: - Exports become cheaper, boosting industries like textiles and IT services 📈 - Imports become more expensive, hurting sectors like crude oil and transportation 🚨 - Inflation rises as imported goods and raw materials cost more 💸 - Foreign investors may pull out, increasing pressure on the rupee 📊 What it Means for You: - Higher prices for imported goods and electronics 📱 - Increased cost of living, reduced purchasing power 💸 - Impact on investments and debt, as foreign debt becomes more expensive 📈 The Indian government and central bank can manage inflation by raising interest rates, but this may slow economic growth 📊. It's a delicate balancing act. Key Statistics: - India spends $150 billion on crude oil imports annually ⛽️ - Foreign portfolio investors have pulled out significant amounts from Indian stocks 💸 Stay informed about the latest market trends and economic updates. Share your thoughts on the Indian Rupee's depreciation! 💬 #IndianRupee #CurrencyDepreciation #EconomicImpact #Inflation #ForeignInvestments #CrudeOil #InterestRates #EconomicGrowth #MarketTrends #Finance #Economics

The Impact of Crude Oil Prices on the Indian Economy 🌐 Crude Oil Price Trends and Their Significance As the global economy grapples with fluctuating crude oil prices, India stands at the crossroads of economic challenges and opportunities. Let’s delve into how these oil price movements reverberate through our nation’s financial landscape: GDP Growth and Household Impact: International crude oil prices, currently elevated due to geopolitical tensions (hello, Russia-Ukraine war!), could cost India approximately 1.9% of its GDP. Households may feel the pinch, with an estimated impact of $22 billion (about Rs 17 lakh crore). That’s a substantial sum affecting everyday lives. Inflation and Revenue Streams: Rising oil prices tend to stoke inflation. For every $10/barrel increase, expect a one percentage point surge in inflation. Excise revenues may take a hit, affecting government coffers. Current Account Deficit (CAD): The Reserve Bank of India (RBI) warns that every $10/barrel rise in crude prices widens the CAD/GDP ratio by 43 basis points. A delicate balance to maintain! Petrol and Diesel Prices: Crude oil directly influences fuel prices. As oil costs rise, so do the prices at the pump. Conversely, a drop in oil prices is a boon for the Indian economy. 🔗 Read more about crude oil prices and their impact: Crude Oil Price Today Live: Stay updated on real-time crude oil prices in India. How much will high crude oil prices cost India economy: A deep dive into the economic repercussions. Understanding the surge in crude oil prices and its impact on the Indian economy: Insights from the experts. Remember, the oil market isn’t just about barrels and prices—it’s about livelihoods, growth, and resilience. Let’s navigate these choppy waters together! 🚢💡 #CrudeOil #Economy #India #LinkedInPost

Want to know about INR fluctuation on India's Economy?? In India, the fluctuation of the rupee against other currencies significantly influences the country's economic dynamics. A weaker rupee enhances the competitiveness of Indian exports in global markets, stimulating economic growth by boosting export revenues. However, it can also lead to higher import costs, potentially contributing to inflationary pressures. Foreign investment inflows may increase as a result of a depreciating rupee, supporting capital formation and infrastructure development. Conversely, a stronger rupee makes imports more affordable but may dampen export competitiveness. The Reserve Bank of India's monetary policies play a crucial role in managing currency fluctuations to ensure stability and support economic objectives. Understanding these dynamics is essential for policymakers, businesses, and investors to navigate the complexities of India's economic landscape. Follow Prajjawal Verma for more... Repost if you like it... Piyush Kumar Thanks... Parth Verma Thanks... Equivaluesearch Thanks... #investing #markets #economy #stockmarket #forex #currency

If you are also a sucker for 'catch-all' type charts like me, here's one for you. India's real effective exchange rate hit a seven-year high in July. REER above 100 means an overvalued currency, which is known to hurt exports and growth. I differ however, since REER's simplistic construction needs modifications to gauge its true competitiveness quotient. This not being the point of this post however. Interestingly, REER has edged up despite nominal effective exchange rate (NEER) weakening in the last few years (thanks to RBI?). The gap in the story is inflation differentials (REER=NEER adjusted for domestic-foreign price differential). This basically highlights why bringing inflation down is important even for growth and exports, especially when your trading partners such as China are barely recording any inflation at all, and are exporting excess capacity on a large scale. India has added 40 billion dollars worth of trade deficit with China in the last three years alone. The first 60 billion took over 15 years. #exchangerates #trade #india #monetarypolicy