Is the new low just the beginning? Former India central bank officials hint at "relaxing Forex controls". How much further will the rupee fall?

Former central bank officials hinted at "easing Forex controls," causing the rupee to briefly dip below the 86 mark. Mitsubishi UFJ believes that the current account deficit as a percentage of GDP is widening, foreign direct investment (FDI) performance is disappointing, and under the risk of Trump 2.0 tariffs, the rupee will fall to 86.80 in the first quarter and to 88.50 in the fourth quarter.

wallstreetcnJan 6 21:03

India Shares End Lower; Bank and Tech Stocks Weigh -- Market Talk

WSJJan 3 18:44

India's Sensex Falls 0.1%, Dragged by Tech Stocks -- Market Talk

WSJJan 3 12:06

India's Benchmark Index Has Solid Start to Year -- Market Talk

WSJJan 2 19:07

The non-deliverable forward market arbitrage expands, and the Indian Rupee may hit a historical low again.

The significant demand for U.S. dollars in the non-deliverable forward (NDF) market has expanded arbitrage with the onshore market in India, putting greater pressure on the rupee, bringing it close to another historical low.

Zhitong FinanceJan 2 16:55

With corporate profits slowing and foreign investment withdrawing, the Indian stock market is expected to underperform against major Global peers in 2024.

The Nifty 50 Index and the Sensex Index rose by 8.8% and 8.2% respectively this year, marking the ninth consecutive year of growth.

Zhitong FinanceDec 31, 2024 21:25