Capital flows could also turn more favourable. Potential inclusion of Indian government bonds in global bond indices, stabilisation in corporate earnings, and the likelihood of renewed FPI equity inflows may ease pressure on the rupee.
Joshi said, "This signals circumspection, it also underscores the likelihood of a rate cut in December. The outsized US Federal Reserve rate cut of 50 basis points in September marked complete and a decisive turn in monetary policy among major central banks. Yet, for emerging market peers, d
The Indian currency Rupee was the least volatile major currencies among its emerging market peers and a few advanced economies in the just-concluded financial year 2023-24, according to the Monthly Economic Review report of the Department of Economic Affairs under the Ministry of Finance.