Global equity markets advanced as renewed diplomatic efforts to resolve the Iran conflict eased inflation concerns despite continued tensions around the Strait of Hormuz.
The depreciation in the local currency is highest in last three years due to tariffs related impact leading to higher demand for dollars among importers and outflows of funds from domestic equity market.
The rupee has been on the depreciation path in the last few months due to various factors such as widening trade deficit, rising crude oil prices, and a surge in the dollar index after the US Federal Reserve hinted at fewer rate cuts in 2025.
Japan’s Topix dropped in its first session after a multiday holiday, though shares in Korea and Australia gained. US contracts also slipped
The greenback is strong because the American economy is vigorous. The region does have choices, none of them easy
The Indian rupee opened marginally higher against the US dollar tracking gains in local equities and Asian currencies markets.
An RBI-appointed committee recently suggested measures for the internationalisation of Indian rupee with inclusion in IMF's Special Drawing Rights Basket (SDR). The panel proposed integrating Indian currency for cross-border transactions as well.