The Indian Rupee is likely to find support in the near to medium term from improving trade prospects with the US after the reduction in tariffs and a possible shift of portfolio flows towards India, according to Trinh Nguyen, Senior Economist for Emerging Markets at Natixis based in Hong
Nguyen attributed the change partly to expectations that the India-US trade deal will boost India's export income, providing a stronger underlying flow of foreign exchange.
India's household gold stockpile, which is estimated at around 25,000 tonnes, has quietly emerged as one of the country's most important macroeconomic shock absorbers, offering support to currency stability, financial resilience, and consumption at a time of global uncertainty.
The RBI governor said net foreign direct investment (FDI) flows remain strong at USD 22.3 billion during April-December 2022. It was USD 24.8 billion in the corresponding period last year, he added.