look news india
Jagat Jamadar There are presidential elections in America. If Republican candidate Donald Trump wins, India's central bank, the RBI, is set to face a sudden outflow of foreign funds and depreciation of the rupee.
Reserve Bank will use foreign exchange reserves
According to the information, the Reserve Bank of India will use its large foreign exchange reserves to protect the local currency in case of global market turmoil and inflow of foreign funds. “This will help deal with reserve volatility. If outflows increase, the RBI will step in to manage it, as it has been doing.
Promise to impose 60 percent duty on imports from China
According to reports, it was also warned during the election campaign that any significant increase in US tariffs on China could adversely impact India and other emerging economies. Trump has promised to impose 60 percent duty on imports from China.
U.S. Treasury yields have risen nearly 50 basis points this month and the dollar index has strengthened 3.3% as Election Day approaches. There has been a record outflow of over $10 billion in foreign funds from Indian equities, while foreigners have pulled out $700 million from the debt market.
India's foreign exchange reserves decline for the third consecutive week
This month the rupee has reached a record low, due to which the central bank has had to intervene. However, it has been one of the least volatile major Asian currencies, hovering in the range of 83.79-84.09 per dollar.
India's foreign exchange reserves fell for the third consecutive week to $688.27 billion as of October 18, the lowest in a month, latest RBI data showed. However, it is the fourth largest reserve in the world.
Trump raised demand for election card in elections
According to the information, the presidential election is to be held on Tuesday 5th November. Deputy Kamala Harris and Donald Trump have a tough test. After winning the elections by narrow margins, both candidates have turned their attention to Sun Belt states.
Before the elections, Donald Trump has expressed his displeasure about the voting system in the country. Apart from this, emphasis has also been laid on making identity card mandatory for voting. According to former President Trump, voter ID card should be made mandatory for elections. But Democrats are opposing voter ID so people can vote to rig elections.