Market Volatility Triggered by Energy Uncertainty The Indian Rupee plummeted to a record low of 94.81 against the US Dollar on Tuesday, driven by investor panic following the United Arab Emirates’ sudden announcement of its withdrawal from the OPEC+ alliance. The move, which threatens to upend global oil production quotas and supply stability, has triggered…
The Indian government’s latest Economic Survey, released this week in New Delhi, has issued a stark warning regarding the tightening of foreign capital inflows into the country. The report highlights a concerning trend of drying Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII), citing these shifts as significant headwinds for the stability of the…
Strategic Monetary Intervention Former Reserve Bank of India (RBI) Deputy Governor Michael Patra has publicly advocated for the central bank to utilize the US Federal Reserve’s FIMA Repo Facility to mitigate extreme volatility in the Indian rupee. Speaking at a policy forum in Mumbai this week, Patra argued that accessing this liquidity window could provide…
Record Intervention to Stabilize the Rupee The Reserve Bank of India (RBI) expanded its short dollar positions in the foreign exchange forward market to a record $104 billion as of March, according to data released this Thursday. This aggressive intervention follows mounting pressure on the Indian rupee, which has faced significant volatility due to the…
