foreign currency assets

Falling exchange rate can curb imports more effectively than austerity measures. Don't intervene in forex market

The Indian rupee has fallen nearly 6% against the US dollar due to Middle East tensions, prompting the Reserve Bank of India to consider measures like interest rate hikes and attracting dollar inflows. Officials are exploring a foreign currency deposit scheme for NRIs and a potential sovereign dollar bond to stabilize the currency.

The Indian rupee hit a record low of 96.70 against the US dollar on Tuesday, extending its losing streak to eight sessions. Rising crude oil prices, foreign fund outflows, and a strong dollar due to global risk aversion are key factors. Forex traders also cited supply-chain disruptions. The Reserve Bank of India's intervention and import restrictions might offer some support.

For fuel, price hikes will do the job. For rupee, a hike in interest rates, one-time dollar bonds issue for NRIs & capital gains tax rejig will do the trick. Remember, our macros are just fine

India's foreign exchange reserves experienced a significant drop of $7.794 billion, reaching $690.693 billion in the week ending May 1. This decline, primarily driven by a fall in foreign currency assets and gold reserves, follows a previous decrease. The central bank's intervention in the forex market to support the rupee is a key factor behind this trend.

Rupee depreciation is not new, what is new however is the rapid pace at which it is falling. It’s the biggest risk for India’s external sector resilience at the moment. In just over a year, the rupee has depreciated over 14%.

Rupee hit a fresh record low of 96.07 against the US dollar on Friday, extending its losing streak over three straight sessions amid soaring crude oil prices and escalating tensions in West Asia. At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar and slipped further to 95.94, down 30 paise from its previous close.

The Indian Rupee hit a fresh all-time low against the US dollar, slumping to 95.74 amid soaring crude oil prices and Middle East tensions. While RBI interventions and higher gold import duties offered some support, the currency remains vulnerable. Foreign investors offloaded equities, yet domestic stock markets opened higher.

The Indian rupee continued its decline against the US dollar, falling 18 paise to 96.38 amid rising crude oil prices and Middle East tensions. The currency has lost over 5% since late February, with concerns over geopolitical instability and foreign portfolio investor outflows pressuring its value.

The erosion in reserves reflects not only intervention by policymakers to support domestic currencies, but also valuation losses in non-dollar assets, according to data compiled by Bloomberg.

Gold prices dropped to over a month's low as rising oil prices and Middle East tensions fueled investor anxiety, pushing them away from the safe-haven asset. Higher energy costs are also raising inflation concerns, increasing the likelihood of prolonged elevated interest rates from the US Federal Reserve.

Homebuyers in 2026 face a complex affordability landscape. While loan rates are historically low, rising construction costs and a shrinking supply of affordable homes present challenges. Buyers must honestly assess their finances and consider long-term implications for a sustainable purchase.

Gold price prediction today: Gold prices may gain if oil prices fall, but the rise is likely to be capped, says Praveen Singh, Head Currencies and Commodities, Mirae Asset ShareKhan.

The CEA’s words could not be more direct and the situation the world’s sixth largest economy faces is by no means small. Several macroeconomic indicators are in focus; inflation, health of the current account, and the exchange rate.

PM Modi has called on citizens to adopt measures aimed at conserving foreign exchange, as the surge in oil prices triggered by the Iran conflict has intensified pressure on the rupee and strained India’s foreign exchange reserves.

As rising costs, visa uncertainty, and unstable job markets reshape global education, Indian students are beginning to view studying abroad less as a dream and more as a financial gamble. Behind university brochures and migration promises lies a generation burdened by debt, anxiety, and the fear that overseas education may no longer guarantee stability, mobility, or a better future.

India has significantly increased import duties on gold and silver to 15% from 6%, aiming to curb rising imports and conserve foreign exchange amid the West Asia crisis. This move follows Prime Minister Modi's appeal for austerity and aims to ease pressure on the rupee and the country's balance of payments.

The move to up the gold import duty comes days after PM Narendra Modi appeals to citizens to avoid unnecessary gold purchases for a year. But is a hike in duties an effective way to curb consumption? We take a look:

Despite the bullish undertone in equities, several risk factors continue to keep investors on edge. The rupee touched a fresh record low after breaching the 95.8 mark against the US dollar for the first time.

RBI is not alone in repatriating its gold reserves. Several central banks like France’s Banque de France, Germany’s Deutsche Bundesbank, Serbia’s National Bank have done the same - buy why?

One of the key triggers behind the market decline was renewed uncertainty surrounding the US-Iran conflict. US President Donald Trump said the ceasefire with Iran was “on life support” after Tehran rejected Washington’s latest proposal aimed at ending the conflict. Trump described Iran’s demands as “garbage.”

India's enduring love for gold spans centuries, evolving from tradition to modern investment. Women hold vast reserves, and the market is set for significant growth. Digital gold and ETFs are gaining traction alongside traditional jewellery. Gold remains a symbol of prosperity, security, and auspiciousness for Indians across generations.

Persistent foreign fund outflows and the rupee sliding to record lows have further dampened sentiment, prompting investors to stay cautious and intensify selling across equity markets.