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Global turmoil may restrict domestic impact, say economists

Global spillovers in 2024 can create volatility but the runaway depreciation of the Rupee may not happen as narrowing deficit have made the currency resilient. The Reserve Bank is also equipped with a strong armoury of foreign exchange reserves of over $ 600 billion to defend the rupee compared to $292 billion in 2012-13 adding to the market perception that RBi is being extra vigilant. ....

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global financial markets: India's no longer 'fragile', can weather global market volatility

In the face of global financial market turbulence, India s rupee appears more resilient due to a narrowed current account deficit (CAD) and bolstered forex reserves. Increased exports post-pandemic buffered the CAD, keeping it manageable at 2% in FY23 despite soaring commodity prices. Forex reserves, standing at over $600 billion, fortify the RBI s ability to stabilize the rupee, marking a significant contrast to a decade ago when India was tagged among the Fragile Five economies. Forecasts project a reduced CAD and stable rupee for the upcoming fiscal years. ....

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