Saturday, July 26, 2025

Creating liberating content

File photo: Commerce and industry minister Piyush Goyal (Picture credit:

Union minister Piyush Goyal (left) and Britain’s secretary of state

Related News

File photo: Union minister Piyush Goyal (Picture credit: PTI) Union commerce and industry minister Piyush Goyal on Saturday said the European Union’s Carbon Border Adjustment Mechanism (CBAM) is likely to

File photo: Commerce and industry minister Piyush Goyal (Picture credit: PTI) Commerce and industry minister Piyush Goyal on Saturday said that discussions with the United States on the proposed bilateral

Union minister Piyush Goyal (left) and Britain’s secretary of state for business and trade, Jonathan Reynolds, shake hands after they signed the free trade agreement. (Picture credit: AP) India has

Sanjiv Puri (left), ITC (TOI) Leading FMCG conglomerate ITC Ltd. plans to invest Rs 20,000 crore across its business verticals over the medium term, spanning the next five to six

NEW DELHI: Union commerce and industry minister Piyush Goyal on Saturday hailed the newly signed free trade agreement with the United Kingdom and said that the deal was signed on

Edelweiss mutual fund CEO Radhika Gupta emphasized the importance of adopting a more well-rounded approach to personal finances, one that extends beyond the conventional emphasis on saving and long-term investing.“My

Trending News

File photo: Union minister Piyush Goyal (Picture credit: PTI) Union commerce and industry minister Piyush Goyal on Saturday said the European Union’s Carbon Border Adjustment Mechanism (CBAM) is likely to

NEW DELHI: Union commerce and industry minister Piyush Goyal on Saturday hailed the newly signed free trade agreement with the United Kingdom and said that the deal was signed on

While treatment costs in India are low, so are the medical insurance premiums. (AI image) New Delhi: Low medical insurance premiums, affordable treatment costs and high quality healthcare facilities at

MUMBAI: There is no proposal to allow corporates – either directly or through NBFCs – to obtain banking licences, RBI governor Sanjay Malhotra said on Friday, citing “an inherent conflict

MUMBAI: SBI Cards reported a 6.4% decline in net profit to Rs. 556 crore for the June quarter, compared with Rs. 594 crore a year earlier, as higher impairment losses

This is a representative AI image (Pic credit: Lexica) NEW DELHI: Scotch and British gin makers may have been successful in gaining lower duty access to the Indian market, but

Rupee dives 88p to 85.71/$, worst 1-day fall in over 2 years

Word Count: 699 | Estimated Reading Time: 4 minutes


Rupee dives 88p to 85.71/$, worst 1-day fall in over 2 years

MUMBAI: The rupee closed at 85.71 against the dollar, down from 84.83 on Wednesday – its worst day since Feb 2023. The currency hit a low of 85.76 during the day, falling more than a rupee from the day’s high.The rupee rose at the start of the session and remained steady until early afternoon. However, around 2:30pm, sentiment changed following govt’s announcement that Pakistan targeted several military locations in the northern and western regions, which were neutralised by India. Dealers said this was seen as an escalation of the conflict. Equity markets, which were in the green until then, also saw a sharp fall after the statement.Some dealers are forecasting that the rupee could breach the 86 level if tensions continue.“Importers delayed buying dollars, anticipating the rupee would strengthen further. However, after govt confirmed that multiple locations were targeted by Pakistan and that India responded, the situation was seen as an escalation, prompting importers and corporates with ECB obligations to hedge their positions. This led to increased demand for dollars, putting pressure on the rupee,” said K N Dey, a forex consultant who advises corporates.Dollar-rupee forward premiums also jumped, with the one-year implied yield rising 16 basis points (100bps = 1 percentage point) to a near one-month high of 2.34%. “Historically, the rupee weakened during periods of geopolitical tension, such as the Russia-Ukraine conflict, when India faced indirect economic impacts. Now, with India directly involved in the current conflict, the rupee faces heightened risk, and further escalation could significantly increase pressure on the currency,” said Dey.Dealers said the escalation of conflict could hurt capital flows if foreign investors turn cautious. The resulting weakening of the rupee would also affect other flows waiting for the currency to stabilise. Part of the dollar’s gains on Thursday were also due to a rebound in the greenback. The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.46% higher at 100.07.Brent crude, the global oil benchmark, rose 1% to $61.76 per barrel in futures trade.However, given that similar conflicts in the past have not escalated, dealers believe the impact may be temporary. Internationally, the dollar declined sharply in March and April 2025, reflecting reduced investor confidence due to economic policy uncertainty and the impact of new tariffs.





Source link

Sign In

Welcome ! Log into Your Account