Dollar Dominance

Chief Economic Advisor V Anantha Nageswaran expressed hope that the currency will recover next year

Dollar outflows from FPIs, trade deficit probably widening with export growth slowing down, and the trade deal with US is still not on the table are the three main reasons why the rupee is falling

As Trump tariffs hit India's trade, US Treasury Secretary Scott Bessent shot down talk of the rupee gaining 'reserve' status, citing its weakness versus the dollar

The brokerage is bullish on Trent, DLF, and Indian Hotels among others as it anticipates higher risk appetite for high beta plays

Trump's remarks on Powell spur Fed rate cut hopes; rupee hits over two-week high at 85.71, though gains capped by RBI intervention via PSU banks

The dollar was last down 0.5% on the Japanese yen at 142.99, and also lost ground versus European currencies with the euro and pound both up 0.2% at $1.1341 and $1.3328 respectively

As a hegemon, the US no longer derives its hegemonic powers from manufacturing and goods

Reserve Bank and the Bank of Mauritius (BOM) have signed a pact for establishing a framework to promote the use of the Indian Rupee and the Mauritian Rupee (MUR) for cross-border transactions. The Memorandum of Understanding (MoU) was signed by RBI Governor Sanjay Malhotra and BOM Governor Rama Krishna Sithanen G C S K, the central bank said in a statement on Tuesday. "The MoU documents were exchanged in Port Louis, Mauritius in the presence of the Prime Minister of India Narendra Modi and Prime Minister of Mauritius Navinchandra Ramgoolam, on Wednesday, March 12, 2025," it said. The RBI said the MoU aims to promote the use of INR and MUR in bilateral trade. The MoU covers all current account transactions and permissible capital account transactions as agreed upon by both the countries. The framework would enable exporters and importers to invoice and pay in their respective domestic currencies, which in turn, would enable the development of a market in the INR-MUR pair. Use of lo

Market focus remains on trade tensions. In his latest warning to Canada, US President Donald Trump said on Friday that reciprocal tariffs on dairy and lumber could be imminent

Concerns about the US growth outlook alongside uncertainty about the growth-inflation impact of trade tariffs have weighed on the dollar and US bond yields over recent sessions

China's retaliatory tariffs on some US exports are due to take effect on Monday, with no sign as yet of progress between Beijing and Washington

The dollar index was last down 0.67 per cent on the day at 107.42. It reached 110.17 on Jan. 13, the highest since November 2022

US President Donald Trump warned BRICS nations, stating that countries pursuing de-dollarisation efforts will face a 100 per cent tariff on trade with the United States

Volumes were light with holiday for New Year looming and Japan on holiday for the rest of the week, with the Santa-rally losing some steam as elevated Treasury yields weigh on high equity valuations

The rupee had settled at Rs 85.07 per dollar on Thursday

Dollar index, which measures the US currency against six rivals, was steady at 106.77 and on course for 5 per cent gain for the year

If Trump wants to maintain the dollar's primacy, he should recognise that its value is not dependent on American power and threats, but on American reliability

While dollar-rupee forward premiums rose on Thursday in reaction to the heightened odds of a Fed rate cut and on the back of an elevated USD/INR overnight swap rate, they were pegged by the central

He also mentioned that the idea of a currency for BRICS countries was floated by one of the countries; however, no decision has been made on the matter

RBI Governor Shaktikanta Das explained India's stand on de-dollarisation after US president-elect Donald Trump's warning to Brics nations