Category: Beyond

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Finance commission chief says rupee can cross ₹100

The Indian rupee remained under focus on Friday, trading at around 96.28 against the US dollar, as global developments and currency market movements continued to influence investor sentiment.

During these developments, comments by finance commission chief-Arvind Panagariya have sparked discussion over India’s approach to managing the currency. Panagariya said the Reserve Bank of India should not become overly concerned if the rupee moves beyond the ₹100-per-dollar mark, stressing that exchange rates should adjust according to market realities.

While the rupee witnessed some recovery during recent sessions, concerns over oil prices, global uncertainty and foreign investment flows continue to keep markets cautious.

According to him, levels such as ₹100 against the dollar often carry psychological importance, but they should not be viewed as strict barriers. He noted that several factors including inflation, trade activity, global capital flows and international market conditions play a role in determining currency values.

Economists pointed out that fluctuations in the rupee are common and often reflect broader global developments. While movements in the exchange rate can influence import costs and investor sentiment, they do not by themselves determine the overall health of the economy.

Experts expect the rupee’s direction in the coming weeks to depend on oil prices, global economic trends and foreign investment activity.

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Gold crosses ₹1lakh, Silver near ₹2.85 lakh

Gold prices continued to remain high across Indian markets on Friday, keeping both investors and jewellery buyers focused on the bullion market. The price of 24-carat gold was around ₹1.64 lakh per 10 grams, while 22-carat gold was trading near ₹1.51 lakh per 10 grams. Silver prices also witnessed movement during the day, reflecting continued volatility in the precious metals segment.

While price changes during the session were limited, gold has remained at elevated levels over the past few weeks. For many consumers planning jewellery purchases, especially for weddings and special occasions, higher prices have resulted in more cautious buying decisions. Several buyers are choosing to wait and watch in the hope of more stable rates.

Silver, meanwhile, followed a mixed trend. Unlike gold, silver prices are influenced not only by investment demand but also by industrial usage. The metal is widely used in sectors such as electronics, renewable energy and manufacturing, making it more sensitive to changes in economic activity.

Gold traditionally attracts attention during periods of uncertainty, as many investors consider it a safer investment option. Changes in the value of the US dollar and fluctuations in international commodity markets also continue to influence domestic prices.

Jewellers said customer enquiries remain active, but purchasing patterns have become more cautious because of high rates. While demand has not disappeared, many consumers are taking a wait-and-see approach before making large purchases.

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RBI unveils $5 bn swap auction to support rupee

The Reserve Bank of India (RBI) has announced a $5 billion dollar-rupee swap auction to inject liquidity into the banking system and help stabilise the rupee, which has been under pressure in recent weeks.

The auction is scheduled for May 26 and will be conducted for a three-year period. Under the arrangement, banks will sell US dollars to the RBI in exchange for rupees and later buy them back after the swap period ends. This helps increase rupee liquidity in the financial system.

The move comes at a time when the Indian currency has been facing pressure due to rising global uncertainty, higher crude oil prices, and foreign investor outflows. Market volatility and geopolitical tensions have also added to concerns around the rupee’s stability.

Analysts say the RBI’s latest step is aimed at ensuring enough liquidity remains available in the banking system while also calming currency markets. The central bank has been actively managing rupee volatility in recent months through interventions in the foreign exchange market.

Such interventions often absorb rupee liquidity from the system, making additional support necessary. Economists believe the swap auction will help balance liquidity conditions without directly changing interest rates.

The announcement was viewed positively by financial markets, with bond yields easing slightly after the news. Experts also say the measure could help reduce pressure in the currency forward market and improve overall investor confidence.

The RBI has used similar swap auctions in the past during periods of market stress or liquidity tightening. These tools allow the central bank to manage short-term financial pressures while maintaining stability in currency and debt markets.

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Gold near Rs 98,000, Silver below Rs 1 lakh

Gold and silver prices declined on Thursday as weak global cues and cautious investor sentiment weighed on the bullion market. The drop brought temporary relief for consumers and jewellers after precious metal rates remained elevated over the past few weeks.

In the domestic market, 24-carat gold prices hovered around Rs 98,000 per 10 grams in major cities, while 22-carat gold traded near Rs 89,800. Silver prices also slipped below the Rs 1 lakh mark per kilogram in several markets.

Traders said the correction was mainly driven by softer international gold prices and reduced demand for safe-haven assets. Hopes of easing tensions in the Middle East and signs of stability in global markets prompted investors to book profits after gold recently touched record levels.

Market participants are also closely tracking signals from the US Federal Reserve regarding interest rate decisions. A stronger US dollar and rising bond yields generally make gold less attractive to investors, adding pressure on bullion prices globally.

On the Multi Commodity Exchange (MCX), both gold and silver futures traded lower during the session. Analysts believe investors are currently taking a cautious approach as they wait for fresh economic data and clarity on global inflation trends.

Despite the short-term decline, experts say gold continues to remain a preferred long-term investment option. Economic uncertainty, currency fluctuations, and geopolitical risks are still supporting overall demand for the yellow metal.

Jewellers expect the fall in prices to encourage fresh retail buying, especially during the ongoing wedding season. Many buyers who had postponed purchases due to record-high rates may now return to the market if prices remain stable.

Silver prices also moved lower alongside gold, affected by weak industrial demand and volatility in international commodity markets. However, analysts believe silver could remain active due to its strong industrial use in sectors like electronics and renewable energy.

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HDFC Bank introduces limited work-from-home policy

HDFC Bank has introduced a limited work-from-home (WFH) policy allowing select employees to work remotely for up to two days a week. The arrangement applies to staff in Business Enabling Functions and Corporate Enabling Functions, which include key support and administrative roles.

The policy has come into effect immediately and will remain in place for an initial period of 30 days. After this period, the bank will review the arrangement and decide whether to continue or modify it based on operational needs.

According to reports, the decision has been taken in the backdrop of rising crude oil prices and a broader call to conserve fuel. The move aligns with recent appeals encouraging organisations to reduce unnecessary travel and adopt hybrid or remote working options where possible.

Importantly, the policy will not impact customer-facing operations. Branch services, frontline banking staff, and public interactions will continue to function as usual without any changes. The WFH option is strictly limited to internal departments such as IT, HR, finance, compliance, risk management, and other corporate support functions.

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India considers $1 bn EV incentive plan

India is exploring a proposal worth more than $1 billion to encourage private companies to switch to electric buses and trucks, in a major push to speed up clean transport adoption in the country.

The idea under discussion is to offer financial support to fleet operators so they can replace diesel-powered commercial vehicles with electric ones. This would include buses used for passenger transport as well as heavy trucks used for freight movement.

Officials are reportedly working on how best to structure the incentives so that companies find it easier to bear the high upfront cost of electric vehicles. The aim is to make the shift more practical for private operators, not just government-run transport systems.

The move comes at a time when global oil prices remain volatile due to geopolitical tensions, adding pressure on India’s import bill since the country depends heavily on imported crude. Reducing fuel consumption in the transport sector is seen as one of the most effective ways to lower long-term energy costs.

Commercial transport is a major source of fuel usage and emissions, especially in cities and logistics corridors. By targeting this segment, the government hopes to reduce pollution levels while also improving energy security.

India has already been supporting electric mobility through various schemes that cover electric buses, two-wheelers, and charging infrastructure. However, the new proposal is expected to focus more directly on private operators, which could significantly expand the scale of adoption.

Also Read: DGCA flags Air India Boeing 787 fuel switch

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DGCA flags Air India Boeing 787 fuel switch

The Directorate General of Civil Aviation (DGCA) has ordered a fresh inspection of the fuel control switch system on an Air India Boeing 787 aircraft after a reported technical anomaly during operations earlier this year.

According to reports, the decision follows concerns raised after pilots on a London–Bengaluru flight observed unusual behaviour in the fuel control switch mechanism during engine start procedures. The switch is a critical component that regulates fuel flow to aircraft engines.

As part of the new safety review, DGCA officials will travel to Boeing’s facility in Seattle, United States, to oversee testing of the removed fuel control switch panel. The regulator has termed the matter “sensitive” and has insisted that the inspection be conducted in the presence of its officers to ensure a thorough evaluation.

The move comes after earlier precautionary inspections across Air India’s Boeing 787 fleet, which had not found any systemic defects in the fuel switch locking mechanism. However, the latest incident has prompted renewed scrutiny of the component, which has been under observation in global aviation safety discussions.

Fuel control switches on the Boeing 787 have been closely monitored by regulators worldwide following past safety concerns and investigations into rare incidents involving engine shutdowns. While previous checks did not confirm a design fault, authorities continue to review isolated reports of abnormal behaviour.

Air India has supported the latest inspection process, stating that the component has already been sent to the original equipment manufacturer (OEM) for detailed examination. The airline has reiterated that safety remains its top priority and has cooperated fully with DGCA directives.

The broader investigation is also linked to ongoing reviews of earlier incidents involving Boeing 787 aircraft, including a fatal crash in 2025 in which fuel supply interruption was identified as a critical factor under investigation.

A final report on the overall safety review is expected once the OEM testing and DGCA-supervised analysis are completed.

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Rupee slips to all-time low of 96.90

The Indian rupee slid to its weakest-ever level on Wednesday, hitting around 96.90 against the US dollar and extending a steady decline that has now lasted several sessions. The fall reflects growing pressure from global uncertainty rather than any single domestic trigger.

At the heart of the weakness is a simple imbalance: more demand for dollars, less supply. Importers, especially oil companies, rushed to buy dollars as crude oil prices stayed high in international markets. With India relying heavily on oil imports, every rise in crude pushes up dollar demand at home.

Geopolitical tensions in the Middle East, particularly the ongoing Iran-related conflict, have kept oil markets tense and prices elevated. That has made currency markets nervous, with traders expecting more pressure on emerging market currencies like the rupee.

Foreign investors have also been steadily reducing exposure to Indian stocks and bonds. This continuous outflow has added fuel to the rupee’s decline. At the same time, the US dollar has remained strong globally, supported by higher interest rates and bond yields in the United States.

The result has been a steady weakening trend for the rupee, which has now hit multiple record lows in recent weeks. Traders say sentiment is fragile, with every rise in oil or global uncertainty quickly reflecting in currency movement.

For India, a weaker rupee brings mixed effects. While it can benefit exporters, it also makes imports costlier, especially fuel, electronics, and other dollar-linked goods. That raises concerns about inflation sticking at higher levels for longer.

Also Read: Gold climbs to ₹1.58 lakh, Silver trades near ₹2.85 lakh

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Gold climbs to ₹1.58 lakh, Silver trades near ₹2.85 lakh

Gold prices stayed firm on Wednesday as investors continued to move towards safer assets amid growing geopolitical tensions and uncertainty in global financial markets. In the domestic bullion market, 24-carat gold was trading close to ₹1.58 lakh per 10 grams, while silver prices hovered around ₹2.85 lakh per kilogram.

The recent rise in gold prices has largely been driven by concerns surrounding the Iran conflict and fears that the situation could affect global oil supplies. Rising crude oil prices and weak global equity markets have increased investor anxiety, pushing many towards gold, which is traditionally seen as a safe investment during uncertain times.

Across major Indian cities such as Delhi, Mumbai, Chennai, Kolkata, and Bengaluru, gold rates remained elevated throughout the day. Jewellers said customers are becoming more cautious due to the sharp jump in prices, especially for jewellery purchases. However, demand for gold as an investment — including coins, bars, and digital gold — continues to remain strong.

Silver prices saw slight fluctuations during the session after witnessing a strong rally in recent weeks. Traders said some investors opted for profit booking, leading to mild corrections in the metal. Despite this, the overall sentiment in the precious metals market remained positive.

In the futures market, gold contracts on the Multi Commodity Exchange (MCX) traded with gains as investors continued to bet on higher prices. Silver futures, however, remained volatile because of mixed global signals and concerns about industrial demand.

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State Banks, insurers told to slash costs, go EV

The Indian government has directed state-run banks, insurance companies, and other financial institutions to cut operational costs and accelerate the shift toward electric vehicles (EVs) as part of a broader austerity and sustainability drive.

According to the Finance Ministry, institutions such as State Bank of India (SBI), Bank of Baroda, and Life Insurance Corporation (LIC) have been asked to reduce non-essential expenditure, especially on travel and logistics.

The directive requires organisations to limit physical meetings and use video conferencing wherever possible. Foreign travel by senior executives is also expected to be reduced, with a preference for virtual participation in international engagements.

In addition to cost-cutting measures, the government has instructed these institutions to begin replacing petrol and diesel vehicles used in offices and branches with electric vehicles wherever feasible. The move is aimed at reducing fuel expenses and supporting India’s broader clean energy transition.

Officials said the instructions are part of a wider effort to improve efficiency in public sector institutions while aligning them with environmental goals. The push for EV adoption also reflects the government’s focus on lowering carbon emissions across state-run organisations.

The directive covers a wide network of financial institutions across the country, impacting thousands of employees and large-scale administrative operations. Banks and insurers are expected to gradually implement the changes over time, depending on operational feasibility.

While the immediate focus is on expenditure control and transport changes, the long-term aim is to make public financial institutions more cost-efficient and environmentally sustainable.

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