Currencies

The Indian rupee rose by 29 paise to 95.39 against the US dollar on July 31, driven by the dollar's decline, crude oil price easing, and RBI's support. The rupee has gained 0.9% this week, outperforming other Asian currencies amid ongoing RBI interventions.

The rise in crude oil prices renewed concerns over inflation and India’s external balances.

The Japanese currency is on track to decline 2% in the second quarter, marking its fourth consecutive quarterly loss. This is its longest losing streak since 2022, when it fell for seven straight quarters, according to Reuters.

Speaking at the post-policy press conference on Friday, Malhotra said the consideration was still at a preliminary stage and the central bank was examining its pros and cons.

The currency has already lost nearly 1% this week and slipped well past its recent highs near 92.50, a level reached largely on the back of support measures by the Reserve Bank late last month and again in April.

On whether China can truly challenge the dollar, Schiff was clear: the process is already underway. Central banks have been steadily increasing gold reserves while reducing exposure to US Treasuries, making gold — not the dollar — the world’s largest reserve asset.

INR vs USD: The dollar index recovered slightly after the US Federal Reserve’s policy decision, while US Treasury yields rose after the Fed acknowledged that inflation remained elevated and the labour market continued to stabilize.

The sharpest single-day fall in the dollar occurred on January 20, 2025, the day of Trump’s inauguration as the 47th US President. The USD plunged 1.38% against the euro, as investors reassessed potential policy risks and uncertainties.