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The Indian Rupee Hits an All-Time Low! On December 3, 2024, the rupee dropped to a record low of 84.7425 against the US dollar. This sharp decline is driven by global dollar strength and India’s slowing economic growth What’s the Impact? Costlier Imports: Fuel, electronics, and other goods will now cost more. Rising Inflation: Your daily expenses could see a hike. Challenges Ahead: International travel, studying abroad, and investments are all taking a hit. What Can You Do? Diversify your investments Seek expert advice to protect your financial future Stay Ahead with Credence Investments! Follow us for smart insights, weekly updates, and strategies to safeguard your wealth. Let’s help you turn challenges into opportunities! Pawandeep Kohli Neha Sapra #IndianRupee #CurrencyUpdate #FinanceInsights #GlobalEconomy #InvestSmart #CredenceInvestments #FinancialPlanning #EconomicTrends #WealthManagement #MoneyMatters Indian Rupee decline, currency fluctuation impact, financial strategies India, investment diversification, Indian economy news, rupee against dollar, inflation impact India, financial stability tips, expert financial advice, managing currency risks

Our most recent Monthly Economic Report on India shines a light on developments in the Indian economy from August to September. The report’s insights include:   📈 India's composite Purchasing Managers' Index (PMI) continues to exhibit robust growth in September, surpassing the performance of other major economies.   🚆 Ports and railway freight movement show steady growth.   🌐 Forex reserves exceeding USD 700 billion (as of October 4) provide over 9 months of import cover   ⚡Industrial output and electricity generation faced headwinds, partially due to base effects and September rainfall dampening power demand   📊 Government capital expenditure is tracking approximately 20% lower year-to-date in FY2025 (up to August)   ✅ Consumer inflation stood at 5.5% in September, driven by higher food prices, remains within the central bank’s target range   Access the full report here for more 👉 https://lnkd.in/eB-K9wkz   Akshata Kalloor   #India #Economy #Government #Budget #Infrastructure #Investments

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 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

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

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

Karan Shah writes about India's Rupee: From Fragile Five to Stable Force. Strong leadership & strategic intervention led to a remarkable turnaround in the last 11 years. To join our beta testers group, please fill out the form - https://lnkd.in/dty3VWt5 #India #Economy #Rupee

The Indian Rupee's Remarkable Transformation: A Look Back at 11 Years Ever get a blast from the past on social media? Recently, I stumbled upon an old post from 11 years ago, a time when India's economy was facing some serious headwinds. Remember the "Fragile Five"? We were right in there. The rupee was volatile, inflation was high, and global investor confidence was shaky. Back then, the situation wasn't much different from what we're seeing today – tensions abroad, rising oil prices, and a focus on inflation control. But here's the key difference: the rupee was much more vulnerable. What Changed? Several factors contributed to the rupee's remarkable transformation: Strong Leadership: The Reserve Bank of India (RBI) received a clearer mandate to control inflation, and Raghuram Rajan, a highly respected economist, took the helm. He did a fantastic job, bringing inflation under control and cleaning up a mess of bad loans in the banking system. Intervention with a Purpose: The RBI became a more strategic player, buying dollars when the rupee got too strong and selling them when it weakened. This helped stabilize the currency. Improved Investor Confidence: These actions, along with India's impressive economic growth, attracted foreign investors. Our inclusion in the JPM Bond Index is a testament to this growing confidence. The Road Ahead While the rupee's depreciation of less than 3% annually over the past 11 years is impressive, especially considering India's higher interest rates compared to the US, there are challenges to address: Maintaining Investor Trust: Recent frauds involving Indian companies have scared away some investors. We need to be vigilant and ensure a healthy business environment. Balancing Growth and Exports: A very strong rupee can hurt our exports. The RBI will need to carefully manage this to maintain a healthy balance. The Future is Bright India's economic journey has been remarkable. With continued focus on responsible governance and strategic intervention, the rupee's stability and the nation's economic strength are poised for even greater heights. #India #Rupee #Economy #Investment #JPMBondIndex

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