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The Indian rupee edged higher on Wednesday, helped by the central bank keeping its key rate steady, though impending higher tariffs on shipments to the United States are likely to keep the currency under pressure. The rupee closed at 87.7325 against the U.S. dollar, up 0.1% from 87.8000 on Tuesday. The Reserve Bank of India’s six-member rate-setting panel voted unanimously to hold the repo rate at 5.50% and maintain a “neutral” policy stance, even as economists expect steep U.S. tariffs on Indian goods and subdued inflation to open room for limited further easing.India faces the imposition of a 25% tariff…

This marks a decline of $9.3 billion from the previous week | Photo Credit: MicroStockHub India’s foreign exchange reserves fell by more than $9 billion last week, likely reflecting the central bank’s efforts to shore up the rupee amid U.S. threats of steep tariffs on the Asian nation’s exports.Reserve Bank of India Governor Sanjay Malhotra said in his monetary policy statement on Wednesday that India’s foreign exchange reserves stood at $688.9 billion as of August 1, which marks a decline of $9.3 billion from the previous week.The fall was likely driven by the RBI’s dollar sales to support the rupee,…

The Indian rupee inched up on Wednesday, notching small gains before the central bank’s policy decision, set against the backdrop of fresh trade frictions with the United States. The rupee was quoted at 87.74 against the U.S. dollar at 09:42 am IST, up from 87.80 on Tuesday. The Indian currency recovered despite losses in most Asian peers. “At these levels, the rupee will move on its own momentum and today’s decision adds another layer,” a currency trader at a private bank said.”Markets are firmly positioned for no change in rates, especially after U.S. tariff developments. A rate cut now would…

Central bank has reiterated that while the approval requirement has been done away with, banks must continue to adhere to all existing norms and due diligence procedures | Photo Credit: FRANCIS MASCARENHAS In a significant move aimed at further facilitating trade in Indian Rupees, the Reserve Bank of India (RBI) has simplified the procedure for opening Special Rupee Vostro Accounts (SRVAs). As per the revised guidelines issued on Tuesday by the Central Bank, Authorised Dealer (AD) banks will no longer be required to seek prior approval from the central bank for opening SRVAs of correspondent foreign banks. The RBI said…

The Indian rupee extended losses for a third consecutive session on Tuesday, closing at a fresh record low of 87.80 per dollar.The persistent weakness reflects sustained dollar demand from oil companies and importers, coupled with continued foreign portfolio investor (FPI) outflows from Indian equities, triggered by heightened trade tensions after US President Donald Trump threatened increased tariffs on Indian goods.The local currency closed 15 paise lower compared to Monday’s close of 87.65Ahead of the market open, the rupee traded weaker near 88 per dollar in offshore non-deliverable forwards (NDF). However, intervention by the Reserve Bank of India, through dollar sales,…

The US ISM Services PMI missed consensus in July.The US Dollar clings to its daily gains on Tuesday.Data from the Institute for Supply Management (ISM) showed the Services PMI receded to 50.1 in July, down from 50.8 in the previous month and falling behind analysts’ forecasts of 51.5. Meanwhile, the Prices Paid Index—which tracks inflation—advanced to 69.9 from 67.5, the Employment Index ticked lower to 46.4 from 47.2, and the New Orders Index deflated to 50.3, from 51.3.Market reactionThe Greenback maintains its upbeat performance on Tuesday, motivating the US Dollar Index (DXY) to add to Monday´s bounce and trade at…

The Euro weakens for the second straight day against the British Pound, dragging EUR/GBP below the 0.8700 level.The final HCOB Eurozone Composite PMI for July came in at 50.9, missing expectations of 51.0 and down from 51.0 in June.UK PMI data beat forecasts, with the Composite PMI rising to 51.5 and the Services PMI climbing to 51.8.The Euro (EUR) extends losses for the second consecutive day against the British Pound (GBP) on Tuesday, dragged lower by softer-than-expected Eurozone Purchasing Managers Index (PMI) data. Adding to the downside, sentiment around the Euro remains fragile in the wake of the recently announced…

When it comes to preparing for retirement and optimizing taxes, investors are often tempted by sophisticated strategies like tax-loss harvesting.But beware, the Wash Sale rule, imposed by the IRS, can turn a tax break into a costly trap, especially when it interferes with your Individual Retirement Accounts (IRAs). Here’s what you need to know to avoid mistakes, protect your portfolio and ensure a more effective retirement planning strategy.Understanding the Wash Sale ruleThe Wash Sale rule prohibits you from deducting a tax loss on an investment if you repurchase a “substantially identical” security within 30 days before or after the sale.In other…

In an interview with CNBC on Tuesday, United States (US) President Donald Trump said that they are getting very close to reaching a trade deal with China and reiterated that the tariff rate on Indian imports will be raised soon.Key takeaways”Will be announcing tariffs on semiconductors and chips in the next week or so.””We’ll be initially putting a small tariff on pharma, will go up in one year to 150, 250 pct.””Fed Chairman Powell is highly political.””Many Fed candidates are very good.””Might soon announce replacement for Fed Governor Kugler and Fed Chair candidate.””US Treasury Secretary Scott Bessent wants to stay…

Pound Sterling (GBP) is little changed on the day but is a mild outperformer on the session as a result, with the pound relatively safe from the trade uncertainty that is overshadowing some of its peers still, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report. BoE policy decision Thursday in focus”The BoE policy decision Thursday is the prime focus for UK markets this week, but a 1/4 point cut in the target rate to 4.00% is all but fully priced in.” “Sterling is also consolidating the hefty gains from Friday’s intraday low versus the USD just below the…