The central government's fiscal deficit reached 3% of the annual estimates by May-end 2024-25. India's forex reserves surged to USD 653.711 billion, with FIIs selling shares worth Rs 23.09 crore. The RBI confirmed the increase in reserves, reflecting a positive economic outlook.
The healthy expansion in infrastructure sectors' growth in May was driven by the production of coal, natural gas, and electricity, amidst rising crude oil prices impacting the rupee and positive equity market sentiment.
RBI interventions and global economic factors propelled the rupee's resilience. The JPMorgan index inclusion and current account surplus contributed to the rupee's strength against the dollar amidst changing global market dynamics.
Market anticipates US inflation data, oil supply issues from Russia and the Middle East drive prices. The rupee strengthens against the dollar amidst market optimism and increased foreign investments.
The Indian rupee closed higher at record levels despite dollar demand, reflecting resilience amidst regional pressures. Anticipation of dollar inflows related to JPMorgan's index inclusion boosted the currency.
Amid market fluctuations, concerns over currency intervention lingered as the yen's value approached key thresholds. Traders closely monitored market dynamics, influenced by various factors including overseas funds' activities. The Nikkei's performance hinged on reclaiming previous highs, signaling a potential shift in market sentiment.
Asian shares fell on inflation worries, pushing bond yields higher. The yen's decline raised intervention fears. The dollar surged against major currencies. Markets reacted to unexpected inflation hikes. Uncertainties in commodity markets added to the jittery mood.
Amidst market volatility, the Indian rupee faces uncertainties from unexpected dips and profit-taking motives. The inclusion of Indian bonds in the JPMorgan index drives interbank short positions, hinting at heightened intraday fluctuations. Rising U.S. yields pose challenges for Asian currencies, while offshore yuan and yen weaken, reflecting broader market shifts.