The rupee plunged 38 paise to close at an all-time low of 90.32 against the US dollar on Thursday amid uncertainty over the India-US trade deal. Forex traders said the rupee is expected to trade with a negative bias as the delay in the trade deal between India and the US may continue to dent investor confidence.
'The real story of 2025 is that India officially stopped being a 'market of the future' and started acting as the world's primary economic engine.'
Trump administration's chief negotiator Brendan Lynch is arriving in India to hold talks on the India-US bilateral trade deal, which were impacted after the US imposed 50 per cent import tariffs on Indian goods.
Between FY18 and FY25, India's annual corn imports from the US averaged just about $2 million.
Investors must account for currency depreciation in their financial plans and use instruments that can cushion the erosion in purchasing power.
India's nuclear energy share in total installed capacity remains limited, fluctuating between 1.9 per cent and 2.9 per cent from FY10 to FY24.
The US Representative criticised the administration's new USD 100,000 fee on H-1B visas, observing that Indians hold 70 per cent of these visas and saying the change directly harms workers who have long supported US innovation across technology, science and medicine.
If Lockheed Martin gets the opportunity, then it will set up a mega hub in India to produce the "iconic" aircraft and it will be the first such global facility outside of the US, top officials of the company told PTI.
United States Secretary of State Marco Rubio on Thursday (local time) hailed India as 'one of the top relationships that the US has in the world today' during the Senate confirmation hearing for Sergio Gor, US President Donald Trump's nominee for US Ambassador to India.
Overall economic activity continued to hold up in November with demand conditions remaining robust, thanks to strengthening urban demand, but manufacturing and rural demand showed some signs of deceleration even as services remained strong, according to an article on the State of the Economy written by Reserve Bank of India (RBI) officials in the central bank's December bulletin.
'This has translated into a combined daily loss of 60 crore in revenues for exporters in Tiruppur, Coimbatore, Erode and Karur districts, pushing many small and medium enterprises to the brink of collapse.'
Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal on Thursday said he is not concerned about the rupee at all, arguing that even China and Japan witnessed exchange rate weaknesses during their high growth phases.
'I don't think we should ever negotiate with deadlines or hard stops because we tend to make mistakes then.'
The rupee recovered 55 paise from its all-time low level to close at 90.38 against the US dollar after a volatile trade on Wednesday, amid suspected aggressive central bank intervention.
Foreign investors have pulled out Rs 11,820 crore ($1.3 billion) from Indian equities in the first week of this month, primarily driven by the sharp depreciation of the rupee. This sharp withdrawal follows a net outflow of Rs 3,765 crore in November, further pressuring markets.
Senior officials from India and the US engaged in virtual talks to discuss bilateral ties, focusing on trade, investment, critical minerals, and energy security, including civil nuclear cooperation.
The rupee fell 23 paise against the greenback to settle at a new all-time low of 91.01 (provisional) on Tuesday, weighed down by relentless foreign fund outflows, no breakthrough in India-US trade deal, and persistent US dollar buying.
The fact that Gor has President Trump's ear makes him an extremely valuable commodity for India -- he represents both a challenge and an opportunity, points out Aditi Phadnis.
Indian and US military contingents will participate in a joint exercise in Alaska, focusing on tactical drills and integrated use of military systems.
The commerce ministry on Tuesday said the discussions with visiting US Chief Negotiator Brendan Lynch on the proposed bilateral trade agreement were positive and forward looking.
Meeks, a ranking member of the House Foreign Affairs Committee Democrats, on Wednesday (local time) underscored "Congress' support for the US-India partnership," following his meeting with Indian Ambassador to the US Vinay Mohan Kwatra.
The rupee plunged 26 paise to an all-time low of 90.75 against the US dollar in intra-day trade on Monday, weighed down by uncertainty over an India-US trade deal and persistent foreign fund outflows.
United States representative Sydney Kamlager-Dove while talking about the famous car selfie of Prime Minister Narendra Modi with Russian President Vladimir Putin said that it spoke a thousand words.
The 2025 US National Security Strategy marks a major pullback, with America turning backward and effectively allowing China greater dominance in Asia. while long-time partners like India are left to face an increasingly unstable global order largely on their own, observes Rajeev Srinivasan.
The enduring relationship between the two countries have survived the disintegration of the erstwhile USSR in 1991, the end of the Cold War and the regime change in both countries, points out Rup Narayan Das.
'A deal will only be possible if India stops buying Russian oil -- but even then, New Delhi must not compromise its core red lines.'
The rupee breached 90-levels against the greenback for the first time on Wednesday, falling 6 paise to 90.02 in early trade, as banks kept buying US dollars at higher levels and FII outflows continued.
As the rupee remains under pressure due to several headwinds and the uncertainty around the India-US trade deal, the Reserve Bank of India (RBI) has been stepping in only to calm volatility, not to stop the fall.
Prime Minister Narendra Modi will host Russian President Vladimir Putin for a private dinner and summit, focusing on defence, trade, and geopolitical issues, including the Ukraine conflict and the impact of US sanctions.
Prime Minister Narendra Modi strongly supported efforts to end the war in Ukraine and conveyed to Russian President Vladimir Putin that India will stand shoulder-to-shoulder in all peace efforts to find an amicable solution to the conflict.
Russian President Vladimir Putin arrived in New Delhi for a two-day visit focused on strengthening ties with India, including defense cooperation and trade, amidst a changing geopolitical landscape.
Lavrov, who addressed the UN General Assembly shortly before External Affairs Minister S Jaishankar's speech at the high-level General Debate, said India and Russia share a "particularly privileged strategic partnership".
Communication channels between India and the US are open to resolve the ongoing tariff issues, and the glitch in trade ties is only temporary, given the long-term relationship between the two nations, government sources said on Wednesday. The US' 50 per cent tariffs on Indian exports to America came into effect from August 27, barring a few sectors.
'Rate cut looks unlikely and there is reason to believe that the cycle is over.'
India has called for a ceasefire, release of all hostages, and peaceful resolution of the Israel-Hamas conflict through dialogue and diplomacy. The Centre informed Parliament that India welcomed the agreement on the first phase of the Gaza Peace Plan. The article also covers India's energy sourcing strategy and the release of Indian fishermen by Pakistan.
Macroeconomic data, global market trends and trading activity of foreign investors will be the key drivers for dictating market sentiment this week, analysts said. "This week, volatility may increase ahead of the November derivatives expiry. Domestically, markets will track several high-impact macro releases, including Q2 GDP data and industrial production.
Luckily for us, a Russia that is desperate to stay relevant in an emerging multipolar world finds in India a reliable geostrategic partner. The Russian proximity to India also keeps China from exploiting its economic dominance vis a vis Russia, points out Colonel Anil A Athale (retd).
'When negotiators meet next, they may like to bring new issues to the table.'
On President Putin's two-day trip to India, Jaishankar said for a "big" and "rising" country like India, it is important to maintain good cooperation with as many important players as possible in the world in line with freedom of choice.
'Maybe he was wrong, but they believed he genuinely meant what he said.'
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