MONETARY INTERVENTIONS
BOJ's Ueda sees upside risks to inflation, says price growth may accelerate into early 2027
Bank of Japan Governor Kazuo Ueda flagged upside risks to inflation, warning that rising energy costs could accelerate price growth into early 2027. He said the central bank was targeting sustainable 2% inflation while monitoring global monetary policy, AI-related market risks and cybersecurity threats to financial stability.
India's forex reserves fall $2.6 billion to $717 billion as of October 30
India's foreign exchange reserves fell by $2.691 billion to $717.056 billion in the week ended October 30, extending a decline from their September peak. Experts attribute the drawdown partly to the deployment of FCNR(B) funds and RBI's dollar sales to support the rupee, while foreign currency and gold assets declined.
Rising debt, non-bank finance may limit ECB policy flexibility, says Schnabel
Rising public debt and growing non-bank financial institutions could constrain the European Central Bank's ability to manage inflation, ECB board member Isabel Schnabel warned. She flagged risks from leveraged investors, market volatility and deteriorating public finances, urging stronger oversight of non-bank lenders and warning that financial stress could force central bank interventions, potentially undermining monetary policy independence and complicating economic stability.
Record-breaking FII selling may have peaked, says Nomura. Why the Nifty target could rise
FIIs may be nearing the end of their record selling spree in Indian equities as outflows ease, earnings beat expectations and valuations fall below post-pandemic averages, according to Nomura. Foreign investors sold around $8.8 billion since September 15, although the pace has moderated. Meanwhile, companies in Nomura’s BSE 200+ universe reported 34% year-on-year profit growth, beating consensus estimates by 18%.
Binance’s $6.3 billion hack dwarfs Bybit's $ 1.5 billion breach: Is cryptocurrency theft getting bigger?
Binance has recently reported a major security breach impacting approximately $6.3 billion in digital assets. After the hack, the exchange temporarily suspended withdrawals while assessing their security systems. Hackers allegedly linked to North Korea have raised concerns about the effectiveness of security measures in cryptocurrency exchanges. Investigators are working to trace the stolen funds and recover as many assets as possible.
India’s forex reserves fall $1.2 billion to $719.74 billion as of October 24
India’s foreign exchange reserves fell by $1.2 billion to $719.74 billion in the week ended October 24, according to the RBI. The decline followed a sharper $5 billion drop in the previous week, when reserves stood at $721.02 billion, indicating continued pressure on the country's foreign exchange kitty.
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Finance ministry estimates India’s Q2 FY27 GDP growth at 7.35%
The finance ministry’s nowcasting model estimates India’s GDP will grow 7.35% in Q2 FY27, following 7.8% growth in the previous quarter, supported by stronger industrial output, energy consumption, port traffic, GST collections and automobile sales.
Global Market: ECB rate decision in focus as Lagarde exit speculation grows
The European Central Bank is expected to hold interest rates steady as oil-driven inflation risks, rising French borrowing costs and uncertainty over President Christine Lagarde's future complicate the central bank's monetary policy outlook.
Rupee hits two-week low on 'sticky' dollar bids, modest intervention cushions
The Indian rupee experienced a sharp decline on Thursday, hitting a two-week low against the dollar. Traders highlighted that heightened dollar demand and overseas debt payments were significant contributors to this depreciation. To stabilize the situation, the Reserve Bank of India intervened. Moreover, the rupee's earlier strength has faded amid ongoing market pressures, prompting markets to eagerly await upcoming decisions from the European Central Bank on interest rates.
Resist temptation to defend ₹ at any cost: Raghuram Rajan cautions India against excessive use of forex reserves
Raghuram Rajan said India should avoid aggressively defending the rupee amid the current depreciation spree, stressing that a weaker rupee could only benefit India. The former RBI Governor cautioned against excessive use of foreign exchange reserves to maintain a specific exchange rate level.
Strong macro fundamentals, policy interventions to anchor eco against global headwinds: RBI bulletin
Strong macroeconomic fundamentals continue to support the Indian economy against global inflation and trade tensions. Recent geopolitical frictions have resulted in increased prices and supply chain issues, leading to policy changes. Currency fluctuations were observed, but measures by the Reserve Bank helped stabilize the rupee recently. Foreign Direct Investment remains robust, driven by significant inflows from major sources like the US and Singapore.
'India needs 8-9% growth to become a developed nation by 2047'
India aims to become a $30 trillion economy by 2047, from its current size of around $4 trillion. The country's gross domestic product (GDP) grew 7.8% in the June quarter, exceeding expectations.
India's forex reserves shed $60 billion in six weeks as RBI steps in to support rupee, one of Asia's worst-performing currencies this year
India’s foreign exchange reserves declined by nearly $60 billion in six weeks to $726.027 billion as of October 9, from a record high of $785.706 billion on September 4. The fall was largely attributed to the Reserve Bank of India’s intervention to support the rupee amid rising crude oil prices, higher US yields and sustained foreign investor outflows. Foreign currency assets and gold reserves also recorded significant declines during the reporting week.
China's trade barriers biggest hurdle in bilateral ties, says Nirmala Sitharaman; flags $100 billion deficit
Nirmala Sitharaman has identified China's constraints on Indian exports as a crucial hindrance to trade advancement. The finance minister reported a staggering trade deficit exceeding $100 billion with China this year, even with improved diplomatic relations. She noted that non-tariff barriers obstruct Indian products, especially generic medicines, from entering China.
Govt may raise fuel prices in November, top economist says
The government is considering a fuel price hike in November as a strategic move before state elections. Inflation is projected to rise significantly due to the proposed price increases, potentially reaching 6.2% later this year. The Reserve Bank of India has forecasted lower inflation, but external pressures may challenge currency stability. Economists suggest a rate hike may be necessary in response to price increases.
Rupee rises for fourth straight day, closes at 95.15
The Indian rupee closed at 95.15 against the US dollar, marking the fourth consecutive day of gains. It reached an intra-day peak of 94.77, which is a one-month high. This appreciation was aided by central bank measures and the unwinding of long dollar positions. Despite the gains, strong dollar demand from importers limited its daily increase. Overall, the rupee's rise presents opportunities for companies engaged in purchasing.
Surging bond yields wreak havoc on Dalal Street, but IMF sees more pain ahead. Why AI is one of the culprits
The IMF has flagged three risks to global financial stability: an AI-driven market correction, rising sovereign bond yields and cyberattacks. These threats could trigger broader financial stress, while high borrowing and tight market linkages may amplify their economic impact.
Global Market: Hong Kong dollar nears weak side of trading band, raising prospect of HKMA intervention
The Hong Kong dollar neared the weak end of its trading band against the US dollar, raising the possibility of Hong Kong Monetary Authority intervention to defend its peg. Weak equity performance, subdued investment flows, and rising US interest rates have pressured the currency, though analysts expect the linked exchange rate system to remain stable.
SBI Research calls for abolition of LTCG tax on equities to boost foreign capital inflows
According to SBI Research, removing the long-term capital gains tax on equities could revitalize investment levels. The report emphasizes extending the holding period to two to three years as a strategy to boost investor morale. Faced with foreign portfolio outflows, the need for policy reforms is clear.
Rupee rebounds nearly 1% after RBI moves to curb speculative trades
The rupee rebounded nearly 1% to 95.77 per dollar on Monday after the RBI announced measures to curb speculative currency trades. A special window for state-owned oil marketing companies eased spot-market pressure, though dollar buying by importers and corporates capped gains. Elevated crude prices and global uncertainties continue to weigh on the currency.
Economics Nobel 2026 winners: Who are Robert E Hall and Michael Woodford, and why their research is significant | An explainer
Economists Robert E. Hall and Michael Woodford won the Economics Nobel, known formally as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, the prize committee announced on October 12.
RBI's rupee defence may drain banking liquidity, ease currency pressure
RBI has introduced measures to curb rupee volatility, which could ease immediate depreciation pressures in the currency market. These measures include limiting foreign exchange derivative contracts and increasing hedging costs for importers. Experts predict that these actions may lead to a reduction in USD/INR rates and forward premiums. However, external factors like crude oil prices may still pose challenges.
JioBlackRock MF sees value in equities after correction, favours target maturity funds for debt investors
JioBlackRock Mutual Fund sees a more attractive risk-reward equation in equities after the recent market correction but cautions that a sustained recovery remains uncertain. In debt, it favours target maturity funds for investors with defined horizons, while recommending cash and money market funds for those with near-term liquidity needs.
Rupee is undervalued, not unmoored: RBI must ride out global market turbulence
The rupee’s weakness reflects global capital-flow turbulence rather than a deterioration in India’s economic fundamentals, with its inflation-adjusted value at levels last seen during the 2013-14 taper tantrum. RBI must contain volatility without defending a particular exchange-rate level, while higher interest rates and inflation control help restore investor confidence.
FCNR inflows to keep cap on bank deposit rates
The liquidity from the foreign currency non-resident deposits is likely to stabilize bank deposit rates temporarily. This situation will allow banks to benefit from higher lending rates associated with floating rate loans. Despite the current surplus liquidity, analysts foresee a shift towards neutrality by the end of December. The Reserve Bank of India emphasizes the importance of proper usage of these deposits for economic stability.
Rupee nears record low despite RBI hike, governor says markets can be irrational
The Indian rupee has dipped to its lowest point in five months, following a recent interest rate hike by the Reserve Bank of India. Analysts remark that the monetary policy appears too lenient to stabilize the currency. Investors are wary as ongoing portfolio outflows and rising global bond yields continue to exert pressure.
Global Market: Hedge fund group warns BoE repo reforms could worsen market stress
Hedge fund group AIMA has warned the Bank of England that proposed gilt repo reforms, including wider central clearing, could reduce liquidity and increase vulnerability to funding disruptions during periods of market stress.
RBI MPC Meeting 2026: West Asia conflict keeps global outlook uncertain, says Sanjay Malhotra
The Reserve Bank of India has raised the policy repo rate by 25 basis points to 5.50%. This increase is the first since February 2023 amid economic uncertainties both domestically and globally. Geopolitical developments have contributed to instability in global markets, affecting economic activity. Despite these challenges, the RBI noted that the Indian economy remains strong with broad-based momentum.
Rupee loses 13 paise to close at 96.42 per US dollar
The rupee weakened 13 paise to close at 96.42 against the dollar, its weakest level in over two months, pressured by persistent foreign investor outflows and oil companies’ dollar demand. RBI intervention limited losses, while markets awaited the central bank’s policy commentary.
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