Tariff worries trigger rupee's steepest fall in nearly three months
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The Indian rupee posted its steepest one-day drop since May and hit a five-month low on Wednesday, hurt by worries over steep U.S. tariffs on Indian exports alongside dollar demand from foreign banks and importers.The rupee hit a low of 87.5125 against the U.S. dollar before closing at 87.42, down 0.7% on the day.Traders said that while the Reserve Bank of India likely stepped in to support the local currency, the intervention was not very aggressive.A 20%-25% tariff may be imposed on India's exports in the absence of a trade deal and as the Asian country holds off on offering fresh concessions ahead of Friday's deadline, Reuters reported on Tuesday.U.S. President Donald Trump said on Tuesday that a trade deal with India had not been finalised and higher tariffs were possible.Trump's tariff threats, the psychological impact of the rupee breaching the 87 mark, and urgency among importers to hedge before the August 1 deadline has weighed on the rupee, said Dilip Parmar, a foreign exchange analyst at HDFC Securities.If conditions remain the same, the rupee could fall below 88 in the coming weeks, Parmar said. The local unit had hit an all-time low of 87.95 in February.In addition to trade uncertainty, persistent foreign portfolio outflows have also been a pain point for the rupee. Overseas investors have net sold over $1.5 billion of local stocks in July.Caution among importers and the absence of inflows have kept the currency under pressure and that may persist in the near-term, a trader at a foreign bank said.Meanwhile, Asian currencies were trading mixed and the dollar index was little changed at 98.8 as investors await the Federal Reserve's policy decision later in the day.The Fed is widely expected to keep rates unchanged, with the focus on commentary from Chair Jerome Powell and whether the decision is unanimous.
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The Hindu
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- The Hindu
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Economists have been warning that the rift with every US trading partner will begin to appear this summer, and the Friday jobs report appeared to sound the bell. 'We're finally in the eye of the hurricane,' said Daniel Zhao, chief economist at Glassdoor. 'After months of warning signs, the July jobs report confirms that the slowdown isn't just approaching—it's here.' US markets recoiled at the jobs report, and the Dow tumbled more than 600 points on Friday. But President Donald Trump responded to the weak report by calling for the firing of Erika McEntarfer, the director of the Labor Department's Bureau of Labor Statistics, which compiles the jobs numbers. 'I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY,' Mr. Trump said on Truth Social. 'She will be replaced with someone much more competent and qualified.' Mr. Trump questioned the big revisions, but they are a standard part of the monthly jobs report. 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Mint
13 minutes ago
- Mint
India unveils first formal rules for drug approval panels in regulatory overhaul
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The second official added, 'There were persistent discussions during SEC meetings about the absence of a guiding document to regulate or suggest proper functioning. This new guidance note outlines the 'do's and don'ts' for experts. Previously, some companies had even alleged that SEC meetings were not being conducted properly." While officials declined to cite specific past incidents, people familiar with the matter said the lack of consistency and alignment among SEC experts, who advise on key regulatory decisions, had severely affected the functioning of the DCGI in recent years. Industry seeks consistency For years, pharmaceutical companies have raised concerns over the unpredictability of SEC verdicts, especially around clinical trial waivers, which are critical for expediting the launch of generics and biosimilars. The new rules aim to reduce such uncertainty by standardizing decision-making across similar products, unless clear scientific reasons justify a deviation. The document states: 'The SECs are indispensable in the CDSCO's evaluation process due to their specialized expertise, independent perspective and commitment to quality assurance. These committees address complex scientific and regulatory challenges, fostering informed decision-making. By operating transparently and consistently across applications, SECs bolster public trust while safeguarding public health and promoting innovation in the healthcare sector." Public health experts have welcomed the reform. 'Any committee should operate under certain guidance, and it is always beneficial for all members of such a committee to have clarity and a common vision. It's akin to laying down the rules of the game," said Dr. Chandrakant Lahariya, a physician and public health expert. He added: 'The Subject Expert Committee (SEC) is an essential requirement for guiding the drug approvals and other processes in all regulatory bodies. When a new drug is needed, the SEC provides its recommendations to the apex drug regulator. CDSCO is a regulatory organization, and they need guidance from a technical expert committee to make decisions. A regulatory body needs guidance from those who deeply understand the subject."
