BasisPointInsight.com - Quo Vadis the IMF? by Michael Debabrata Patra This essay questions whether the IMF’s evolving surveillance and labelling practices now undermine exchange-rate stability instead of safeguarding it. by Michael Debabrata Patra, BasisPointInsight.com

1/5 𝐖𝐡𝐞𝐧 𝐈𝐌𝐅 𝐋𝐚𝐛𝐞𝐥𝐬 𝐁𝐞𝐠𝐢𝐧 𝐭𝐨 𝐔𝐧𝐝𝐞𝐫𝐦𝐢𝐧𝐞 𝐂𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲

In Part V of his ongoing FX series for BasisPoint Insight, 𝐌𝐢𝐜𝐡𝐚𝐞𝐥 𝐏𝐚𝐭𝐫𝐚 turns a critical lens on the IMF’s evolving approach to exchange-rate oversight.

#BasisPointInsight #FXMarkets #ExchangeRatePolicy #Rupee #CurrencyMarkets

BasisPointInsight.com - Rupee’s Turn from Shock Absorber to Amplifier in Oil Shock by Sakshi Gupta As oil prices surge, the rupee risks shifting from shock absorber to amplifier. RBI must balance depreciation and reserves to contain inflation and volatility. by Sakshi Gupta, BasisPointInsight.com

2/3 So what should the RBI do?

Lean against volatility or preserve reserves? Allow gradual adjustment or risk overshooting? And most importantly, how much of this shock should the currency absorb versus the balance sheet?

#FXMarkets #OilShock

1/7 𝐇𝐨𝐰 𝐬𝐡𝐨𝐮𝐥𝐝 𝐭𝐡𝐞 𝐑𝐁𝐈 𝐬𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧 𝐢𝐭𝐬 𝐞𝐱𝐜𝐡𝐚𝐧𝐠𝐞-𝐫𝐚𝐭𝐞 𝐭𝐨𝐨𝐥𝐤𝐢𝐭 𝐢𝐧 𝐚 𝐦𝐨𝐫𝐞 𝐯𝐨𝐥𝐚𝐭𝐢𝐥𝐞 𝐰𝐨𝐫𝐥𝐝?

In 𝐏𝐚𝐫𝐭 𝐈𝐕 𝐨𝐟 𝐡𝐢𝐬 𝐨𝐧𝐠𝐨𝐢𝐧𝐠 𝐅𝐗 𝐩𝐨𝐥𝐢𝐜𝐲 𝐬𝐞𝐫𝐢𝐞𝐬, former RBI Deputy Governor 𝐌𝐢𝐜𝐡𝐚𝐞𝐥 𝐃𝐞𝐛𝐚𝐛𝐫𝐚𝐭𝐚 𝐏𝐚𝐭𝐫𝐚 moves from diagnosis to 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲.

#RBI #fxmarkets #ExchangeRate

BasisPointInsight.com - Why Central Banks Intervene and Why the FX Rate Matters for the RBI by Michael Debabrata Patra Capital flows now dominate currency markets, forcing central banks to intervene. This essay explains why exchange rates matter for the RBI’s stability mandate. by Michael Debabrata Patra, BasisPointIn...

7/8 🔹Large and volatile capital flows can trigger liquidity stress and financial instability.

For the RBI, therefore, exchange-rate stability is not about targeting a level.
It is about containing volatility and safeguarding economic stability.

#FXMarkets

BasisPointInsight.com - Why Exchange Rate Stability Matters More Than Ever for India by Michael Debabrata Patra As alarmist calls on the rupee clash with the IMF’s own labels, this piece asks why exchange rates matter, and why stability cannot be left to markets alone. by Michael Debabrata Patra, BasisPointInsi...

6/6 Part I sets the foundation for a six-part analytical series that will examine floating regimes, capital flows, reserve strategy, IMF surveillance and India’s current policy positioning.

Click on the link to read the full essay 👇

#fxmarkets

BasisPointInsight.com - Currency Valuation: From Competitiveness to Coping Mechanisms by R. Gurumurthy A tour of REER, FEER and BEER shows why currency valuation models often explain discomfort better than they explain exchange rates. by R. Gurumurthy, BasisPointInsight.com

Currency valuation was supposed to explain markets. Instead, it explains economists.

From REER to FEER to BEER, valuation models reveal how theory struggles to keep up with capital flows, geopolitics, and risk sentiment.

Read R. Gurumurthy’s column for BasisPoint 👇

#FXMarkets #CurrencyValuation

BasisPointInsight.com - The Turkey Illusion by V Thiagarajan The illusion of rupee stability in 2024 hid rising risks, as intervention suppressed price signals until volatility returned with force by V Thiagarajan, BasisPointInsight.com

3/3 Read V Thiagarajan’s column for BasisPoint: The Turkey Illusion

#Rupee #FXMarkets #CentralBanking #Volatility #IndiaMacro

Indonesia’s rupiah hovers near **IDR 16,880/USD** as markets price in further **Bank Indonesia easing**. Rising costs, softer consumption, and upcoming **Q4 GDP** keep sentiment cautious, with a steady USD adding pressure.

#Indonesia #FXMarkets #Macroeconomics #EmergingMarkets

The Philippine peso slid to 59.3/$, testing a record low after BSP signaled a possible Feb rate cut. Gov. Remolona says inflation is “reasonably low” and FX moves matter only if they hit prices. Bearish pressures persist.
#PhilippinePeso #BSP #RateCut #FXMarkets #Inflation #EmergingMarkets #PHStocks

After declining from three-month highs above 1.1800, #EUR/USD is flat at 1.1770, staying above important support. ⚖️
As global uncertainties increase and investors await #FOMC minutes, markets remain wary.

#Forex #FXMarkets #USDollar #Euro #Trading

Forex Today: Quiet Trade on Christmas Eve
FX markets are subdued as holiday-thinned liquidity keeps price action muted. Traders stay cautious with limited moves expected.

⚠️ Lighter volumes = unpredictable swings
#Forex #HolidayTrading #FXMarkets #ChristmasEve

🇯🇵📉 JPY strengthens vs USD
BoJ hike bets, intervention warnings & safe-haven demand lift Yen, while dovish Fed expectations weigh on USD. Policy divergence keeps USD/JPY under pressure.

#USDJPY #JPY #BoJ #Fed #Forex #FXMarkets

🇦🇺📈 AUD climbs as USD weakens ahead of US Q3 GDP!
RBA minutes hint policy may be less restrictive as inflation stays sticky, boosting Aussie Dollar sentiment. Meanwhile, rising Fed easing bets + softer USD keep AUD/USD near 3-month highs 🚀

#AUDUSD #RBA #Fed #USD #Forex #FXMarkets #GDP #Inflation

🇬🇧📈 Pound Sterling strengthens after UK Q3 GDP confirms +0.1% growth, matching estimates. GBP/USD trades near 1.34 as the USD softens ahead of US GDP data. BoE signals gradual rate cuts, while Fed remains cautious.

#GBP #PoundSterling #UKGDP #Forex #FXMarkets #GBPUSD #Macroeconomics #MarketUpdate

💶 EUR/USD Update
Incremental selling continues as holiday liquidity thins. The pair is ranging near 1.1685–1.1770, with choppy, low-volume moves likely.

👉 Join our market community for daily FX updates:

#EURUSD #Forex #FXMarkets #MarketUpdate #TradingCaution

#AUD slips for a 6th day as USD strengthens
Despite rising RBA hike bets (Feb odds growing) and higher inflation expectations, the Aussie stays under pressure. Meanwhile, fading Fed rate-cut hopes keep the USD firm.
🔎 Key level: 0.6500
#AUDUSD #Forex #RBA #Fed #USDollar #AustralianDollar #FXMarkets

JPY remains bullish vs USD

BoJ tightening hopes vs Fed cut expectations keep pressure on the Dollar.
#JPY #USDJPY #Forex #FXMarkets

💴 GBP/JPY slides toward 207.00 as the #Yen strengthens.
Japan’s Tankan Q4 hits a 4-year high (15), boosting #BoJ rate-hike bets.
At the same time, weak #UK labor signals keep #BoE cuts in focus.
Policy divergence weighs on the pair.
#GBPJPY #JPY #BoJ #BoE #FXMarkets

BasisPointInsight.com - MPC Signals Maturity as Policy Counters Shocks with Confidence by Ashima Goyal India’s MPC breaks from old precautionary playbooks, using countercyclical policy and clearer signalling to steady growth, inflation and financial stability. by Ashima Goyal, BasisPointInsight.com

5/5 A concise read on how India is navigating shocks with steadier policy hands. 👇

#FXMarkets

BasisPointInsight.com - India’s Exchange Rate Regime Faces a Moment of Truth by V Thiagarajan With the rupee trading like a caged bird and IMF reclassification looming, India faces a reckoning on what its exchange rate regime really is. by V Thiagarajan, BasisPointInsight.com

3/4 As capital flows soften and RBI interventions shape market expectations, the stakes are rising.

🔹Is India edging toward a de facto crawling peg?

🔹What would that mean for monetary policy, credibility, and future capital inflows?

#FXMarkets #CapitalFlows

BasisPointInsight.com - Rupee Strains and the Liquidity Paradox Testing the RBI’s Resolve by Shubhada Rao, Vivek Kumar, and Yuvika Singhal As the rupee faces tariff-induced pressure, the RBI’s interventions are reshaping domestic liquidity, revealing the delicate balance of currency defence and monetary control. by Shubhada Rao, Vivek Ku...

4/4 Read ‘Rupee Strains and the Liquidity Paradox Testing the RBI’s Resolve’ by Shubhada Rao, Vivek Kumar, and Yuvika Singhal. 👇

#Rupee #LiquidityParadox #RBI #CurrencyDefence #MonetaryStability #FXMarkets #IndiaEconomy #TradeShocks

Foreign exchange markets symposium hosted by Cambridge Judge - News & insight - Cambridge Judge Business School Topics covered included FX liquidity, central bank interventions and the impact of AI and digital currencies on currency markets. Learn more.

Cambridge Judge hosted world-leading economists and central bankers to debate the future of FX — from AI in markets to China’s dual-currency system.

Read why this symposium is a global must-attend: https://loom.ly/EBX-qQ0

🎥 Video playlist: https://loom.ly/Ho5oJuw

#CambridgeJudge #FXMarkets

📈 Investors Should Brace for a Stronger Dollar as the Fed Eases More Cautiously🌍💵

newsmax.com/finance/nige...
@newsmax.com

#Dollar #FederalReserve #FXMarkets #Inflation

📈 Investors Should Brace for a Stronger Dollar as the Fed Eases More Cautiously🌍💵

newsmax.com/finance/nige...
@newsmax.com @nigeljgreen.bsky.social

#Dollar #FederalReserve #FXMarkets #Inflation

BasisPointInsight.com - Currencies Under Siege as Fiscal Dominance Takes Hold by V Thiagarajan When fiscal dominance weakens central banks, the first casualty is often currency stability. The rupee’s path today echoes the struggles of the yen and yuan. by V Thiagarajan, BasisPointInsight.com

2/3 India’s rupee is starting to show similar strains. Despite contained inflation, persistent deficits and rising debt raise doubts about fiscal discipline. For investors, credibility is the anchor—and once it slips, currencies adjust.

#FiscalDominance #CurrencyCrisis #FXMarkets #IndiaEconomy

🇺🇸 Why is the dollar falling?

▪️ Trump's tariffs & unpredictable policy
▪️ Soaring US debt
▪️ Political pressure on the Fed
▪️ Global de-dollarisation debates

→ Confidence in the USD as the global reserve currency is fading

#DeDollarisation #FXMarkets

Trade anywhere, anytime with the WealthFX 📱💹 #ForexOnTheGo
#WealthFX #MobileTrading #ForexApp #TradeSmart #FXMarkets