Category: Banking and Finance
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Record FII Outflows and Indian Resilience
India’s financial markets faced a critical test in August 2025 when foreign institutional investors (FIIs) pulled out nearly ₹47,000 crore, marking the highest monthly outflow of the year. The exodus was triggered by global tariff shocks, weak corporate earnings, and a strengthening U.S. dollar. Sectors with heavy export exposure such…
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Fed’s Rate-Cut Signal Sparks Market Optimism
The annual Jackson Hole Economic Symposium once again became the focal point of global financial markets, but this time the message carried by U.S. Federal Reserve Chair Jerome Powell was markedly different. Powell’s remarks hinted at a potential interest rate cut as early as September, sending ripples of optimism through…
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The Rise of Digital Currencies and Their Potential Impact on Traditional Financial Systems
Over the last decade, digital currencies—especially cryptocurrencies—have moved from being niche technological experiments to increasingly important components of the global financial landscape. Bitcoin, launched in 2009, was the first significant step in this transformation, but the ecosystem has since expanded to include thousands of cryptocurrencies, central bank digital currencies (CBDCs),…
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The Indian Rupee’s Sharpest Monthly Fall Since 2022: Breaking Down the Drivers and Implications
In July 2025, the Indian rupee fell by approximately 2.09%, marking its steepest single-month drop since September 2022. At month-end, it closed around ₹87.5950 per USD, having slid as low as ₹87.74, before modestly recovering to near ₹87.58 . What Triggered the Steep Decline? 1. Surge in U.S.–India Trade Tensions…
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The Federal Reserve’s Reluctance to Cut Rates Despite Political Pressure
The U.S. Federal Reserve appears poised to maintain its current interest rate levels, resisting calls for cuts from President Donald Trump. This divergence between political rhetoric and monetary policy reflects deeper institutional and economic considerations. While Trump has argued that lower rates could stimulate investment, reduce borrowing costs, and bolster…
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Mumbai vs. New York: A Tale of Two Financial Capitals
As I explore the financial heartbeat of New York City during my visit from India, I can’t help but reflect on the compelling similarities and stark contrasts between this iconic metropolis and Mumbai—India’s own financial powerhouse. Both cities are the nerve centers of their respective economies, yet their scale, depth,…
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The Fed’s Wait-and-Watch Strategy: Why Interest Rates May Remain Steady Until Year-End 2025
As 2025 unfolds, all eyes remain on the Federal Reserve’s next move. With policy rates held steady at 4.25%–4.50%, the Fed has signaled restraint in the face of persistent inflation and a still-resilient labor market. Despite market speculation that interest rate cuts could begin as early as July, policymakers are…
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Rising Sovereign Debt: A Growing Global Economic Challenge
In the aftermath of successive global crises—from the COVID-19 pandemic to energy shocks and inflationary waves—the world is witnessing a troubling surge in sovereign debt levels. Particularly in developing and low-income economies, this escalation poses grave risks to fiscal sustainability, social investment, and long-term development goals. Global Debt Trajectory: Alarming…
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