Category: Beyond

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Rupee extends fall, hits all-time low at 95.80

The Indian rupee slipped to a fresh record intraday low near 95.80 against the US dollar on Thursday, extending its recent losing streak in the foreign exchange market. The currency touched the psychological level early in the session before seeing limited recovery, according to market participants.

The decline reflects sustained pressure from multiple global and domestic factors. Importer demand for US dollars remained strong, while foreign portfolio investor (FPI) outflows continued, adding to the strain on the rupee. Traders said these combined flows have consistently tilted the balance toward dollar demand.

Rising crude oil prices were another key driver. Brent crude continues to trade at elevated levels due to geopolitical tensions in West Asia, increasing India’s import bill and worsening the trade deficit outlook. Since India imports most of its oil, higher crude prices typically translate into higher demand for dollars, weakening the rupee.

A strong US dollar index in global markets has also weighed on emerging market currencies. Investors are shifting toward safer assets amid global uncertainty, which has further supported dollar strength.

Forex market analysts noted that the rupee has been under continuous downward pressure, repeatedly breaking previous lows over the past sessions. They said the current trend reflects both external shocks and persistent capital outflows from domestic markets.

Despite the currency weakness, equity markets remained relatively stable in earlier trading sessions, though analysts caution that prolonged rupee depreciation could eventually feed into higher inflation and import costs.

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India’s CPI inflation rises to 3.48% in April

India’s retail inflation touched 3.48% in April, marking the highest level in over a year as rising food and service costs continued to affect household budgets.

Data released by the government showed that prices of several daily-use items increased during the month. Food inflation remained a major concern, with vegetables, edible oils and packaged products becoming more expensive in many parts of the country.

Consumers also paid more for eating out, as restaurants passed on higher fuel and ingredient costs to customers. Education expenses, including school and tuition fees, also recorded a rise.

Pet care emerged as another growing contributor to inflation, with urban households spending more on pet food, healthcare and grooming services.

Meanwhile, gold and silver jewellery prices surged after the Centre increased import duties on precious metals to support the rupee and reduce imports.

While inflation remains below the RBI’s 4% target, experts say households are beginning to feel the impact of rising prices across both essential goods and lifestyle-related spending categories.

Analysts said rising crude oil prices and global tensions are adding pressure on inflation and could affect transportation and fuel costs in the coming months.

Also Read: Sensex up 50 points, Nifty ends above 23,400

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Kevin Warsh confirmed to US Federal Reserve Board

The US Senate has confirmed economist Kevin Warsh to the Federal Reserve Board, bringing him one step closer to leading the country’s central bank at a crucial time for the American economy.

Warsh, a former Federal Reserve governor, was approved after a closely watched Senate vote that reflected sharp political divisions in Washington. His confirmation comes as the US continues to deal with inflation concerns, high interest rates and uncertainty caused by global conflicts and rising energy prices.

With his return to the Federal Reserve, attention is now turning to whether he could soon replace current Fed Chair Jerome Powell, whose term is nearing its end.

Warsh is no stranger to the institution. He previously served on the Federal Reserve Board during the 2008 global financial crisis and was involved in some of the key decisions taken during that period. Over the years, he has also worked in finance, law and economic policy.

Supporters describe him as experienced and capable of handling difficult economic conditions. However, his nomination has also sparked debate, especially among Democrats who questioned whether the Federal Reserve would remain politically independent under his leadership.

During his confirmation hearing, Warsh said the central bank must continue to make decisions independently and focus on controlling inflation and supporting economic stability.

The Federal Reserve plays a major role in shaping the US economy by deciding interest rates and managing inflation. Any change in its leadership is closely watched by investors, businesses and governments around the world because Fed decisions often influence global financial markets.

The confirmation also comes during a sensitive period for the global economy, with concerns over slowing growth, geopolitical tensions and volatility in oil prices affecting markets worldwide.

Also Read: Samsung enters India’s refurbished phone market

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Air India cuts overseas flights due to fuel costs hike

Air India has announced reductions in several international flights as soaring fuel prices and geopolitical tensions continue to increase pressure on airline operations.

The airline will temporarily reduce services on select overseas routes between June and August as rising aviation turbine fuel (ATF) costs make operations more expensive. The ongoing conflict in West Asia has also affected global aviation by increasing fuel prices and forcing airlines to avoid certain airspaces, leading to longer flight routes and higher operating expenses.

According to reports, Air India has already reduced around 90 flights in May and plans to cut nearly 100 more flights over the next few months. Some international routes may see fewer weekly services, while a few sectors could face temporary suspension depending on demand and operational costs.

The airline clarified that reports circulating on social media claiming all international flights had been cancelled until July were false. Air India said international operations continue across major destinations, though some schedule adjustments are being made to manage costs more effectively.

Flights to certain sensitive destinations, including Tel Aviv, remain suspended because of security concerns linked to the regional conflict. Industry experts say airlines around the world are currently facing similar challenges due to the sharp rise in fuel prices and uncertainty in global markets.

Air India currently operates around 1,200 flights daily across domestic and international routes. However, a weakening rupee, rising crude oil prices and higher operational expenses have added financial pressure on long-haul international services.

Also Read: Centre hikes gold, silver import duty from 6% to 15%

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EPFO fined ₹50,000 for 10-year delay in PF transfer

The Employees’ Provident Fund Organisation (EPFO) has been directed to pay ₹50,000 compensation to an employee after taking almost 10 years to transfer his provident fund account from one employer to another.

The order was passed by the District Consumer Disputes Redressal Commission in Chandigarh, which criticised the EPFO for the long delay and called it a clear case of poor service.

The employee had switched jobs from Tech Mahindra to Infosys in 2010 and applied for the transfer of his PF balance soon after. However, despite repeated reminders, complaints and RTI applications, the transfer process remained pending for years.

According to the case details, the PF amount was finally transferred only in 2020. The employee then approached the consumer commission, arguing that the delay caused financial loss and mental stress.

During the hearing, the EPFO blamed technical and software-related issues for the delay. The commission, however, rejected the explanation and observed that such excuses could not justify keeping a subscriber waiting for nearly a decade for access to his own savings.

The commission termed the delay a “deficiency in service” and ordered the EPFO to pay ₹50,000 towards compensation and litigation costs within 60 days. It also warned that failure to comply would attract interest on the amount.

The ruling has drawn attention to delays faced by many PF subscribers and is being viewed as a significant decision on accountability in public service delivery.

Also Read: Centre hikes gold, silver import duty from 6% to 15%

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Centre hikes gold, silver import duty from 6% to 15%

The Centre has increased import duties on gold and silver from 6% to 15% in a major move aimed at reducing imports, supporting the rupee and protecting foreign exchange reserves amid global economic uncertainty.

The revised tariff structure, which came into effect immediately, includes a 10% basic customs duty along with a 5% Agriculture Infrastructure and Development Cess (AIDC). Import duty on platinum has also been raised to 15.4%.

Following the announcement, domestic bullion markets witnessed a sharp rally. Gold prices surged nearly 10%, climbing to around ₹1.62 lakh per 10 grams in some markets, while silver prices jumped by nearly ₹17,000 per kilogram to touch ₹2.90 lakh per kg. Traders described the move as one of the sharpest single-day increases in domestic bullion prices in recent years.

Market experts said the sudden rise in import duty directly increased the landed cost of precious metals, leading to a spike in retail and futures prices across the country. Gold and silver futures on the Multi Commodity Exchange (MCX) also recorded strong gains during Wednesday’s trade.

The government’s decision comes amid pressure on the rupee due to rising crude oil prices, foreign fund outflows and geopolitical tensions in West Asia. Officials believe reducing imports of non-essential commodities such as gold can help narrow the trade deficit and conserve foreign exchange reserves.

India is among the world’s largest consumers of gold, with demand driven mainly by jewellery purchases, weddings and investment demand. Industry representatives warned that the steep increase in duty could affect jewellery demand in the coming months, especially as global gold prices are already trading near record highs.

Some analysts also cautioned that higher import taxes may encourage unofficial imports and smuggling, which had declined after the government reduced duties in recent years. Jewellers said consumers could delay purchases in anticipation of price corrections or lower taxes in the future.

The duty hike follows recent appeals from Prime Minister Narendra Modi urging citizens to reduce gold purchases temporarily to ease pressure on the economy and external accounts.

Also Read: Sensex gains over 200 points, Nifty reclaims 23,450

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India eases royalty rules for oil and gas firms

Shares of ONGC and Oil India surged up to 9% after the Indian government reduced royalty rates on crude oil and natural gas production to encourage higher domestic output.

The policy aims to support upstream oil and gas companies by lowering their operational costs and improving profitability. Officials said the revised structure is designed to boost exploration, attract investment, and increase India’s energy production.

Under the new framework, royalty rates have been rationalised across onshore, offshore, and deepwater fields. Offshore and gas production rates have been reduced, while some categories now offer lower or phased royalty charges.

Market analysts say the move could significantly benefit state-run producers like ONGC and Oil India, improving cash flows and encouraging fresh investment in difficult exploration areas.

Following the announcement, both companies saw strong buying interest on the stock market, reflecting investor optimism about higher earnings potential.

The government’s decision is part of a broader push to reduce India’s dependence on imported crude oil and strengthen domestic energy security through increased local production.

Also Read: Toyota to build SUV plant in Maharashtra by 2029

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Toyota to build SUV plant in Maharashtra by 2029

Toyota Kirloskar Motor has announced plans to set up a new manufacturing plant in Maharashtra, expanding its operations in India’s growing auto market.

The facility will be located in the Bidkin Industrial Area and is expected to begin production in the first half of 2029. Once operational, it will have an annual capacity of around 1 lakh vehicles.

The plant will focus mainly on producing a new SUV model, along with full vehicle manufacturing processes such as welding, painting, and final assembly. It is expected to generate about 2,800 jobs.

Toyota said the new unit is part of its long-term plan to strengthen its presence in India and meet rising demand, especially for SUVs, which remain one of the fastest-growing segments in the country.

With production set for 2029, the Maharashtra plant is expected to play a key role in Toyota’s future SUV lineup for both domestic and export markets.

The company also plans to use the facility to support exports to nearby international markets, making it part of a wider global supply strategy.

While investment details have not been disclosed, the project is seen as a major step in Toyota’s expansion in India, where it already operates manufacturing plants in Karnataka.

Also Read: PVR INOX returns to profit with ₹187 cr Q4 gain

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Sensex tumbles 1,300 points, Nifty down 23,600 mark

Indian equity markets witnessed a sharp sell-off on Tuesday, with the Sensex falling over 1,300 points in intraday trade and the Nifty slipping below the 23,600 mark. The downturn extended losses for the fourth straight session, wiping out nearly ₹11 lakh crore in investor wealth over the period.

The market weakness was driven by a mix of global and domestic pressures, including rising crude oil prices, a weakening rupee, geopolitical tensions, and sustained foreign institutional investor (FII) selling. Higher oil prices have raised concerns over inflation and increased costs for companies, while currency depreciation added further pressure on sentiment.

Heavyweight stocks led the decline. Major losers included Infosys, TCS, HDFC Bank, ICICI Bank, and Tata Motors, all of which saw strong selling pressure. Banking, IT, auto, and financial stocks were among the worst-hit sectors, reflecting broad-based risk aversion among investors.

In contrast, defensive stocks provided limited support to the market. Shares of Sun Pharma, ITC, and Hindustan Unilever saw some buying interest, helping cushion the fall slightly, though not enough to reverse the overall negative trend.

Market analysts said the correction is largely driven by external factors rather than company-specific earnings weakness. Rising crude oil prices, triggered by global supply concerns and geopolitical tensions, have heightened fears of inflation and margin pressure for Indian companies.

Foreign investor outflows have also intensified the sell-off, as global funds continue to reduce exposure to emerging markets amid uncertainty and stronger safe-haven demand.

Also Read: Satya Nadella criticises OpenAI board in Musk trial

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US pumps 53 mn barrels from oil reserves

The United States has released about 53 million barrels of crude oil from its strategic petroleum reserves in a move coordinated with International Energy Agency (IEA) member countries to support global energy stability.

The decision comes as fuel prices remain under pressure due to global supply uncertainty and geopolitical tensions affecting oil trade routes. The additional supply is intended to help prevent sharp spikes in petrol and diesel prices.

Officials said the release is part of an emergency response mechanism under the IEA framework, which allows member nations to tap into strategic stockpiles during supply disruptions or market stress. The US plays a key role in such coordinated interventions due to its large reserve capacity.

The oil is being released from the Strategic Petroleum Reserve (SPR), the world’s largest emergency crude stockpile. It is designed to be used only in extraordinary situations when global supply is tight or disrupted.

Authorities said the immediate goal is to increase availability in the market and provide short-term relief to consumers facing higher fuel costs. Energy markets have remained volatile in recent weeks amid concerns over supply stability.

While such releases can help cool prices temporarily, they do not resolve underlying global supply-demand imbalances. Oil prices are expected to continue reacting to geopolitical developments and production decisions by major exporting nations.

Also Read: BofA pays ₹58.5 lakh to close SEBI case