Daily News - Friday, 21 November 2025
RBI doesn't target rupee level, fall due to dollar demand: Guv Malhotra (Business Standard)
RBI Governor Sanjay Malhotra said the rupee’s recent fall is simply the result of stronger demand for dollars and not because the central bank targets any specific exchange rate, while assuring that India’s foreign exchange reserves remain strong and the RBI’s top priority is to maintain overall financial stability as it monitors emerging risks and works to simplify regulations. He explained that trade related pressures and US tariff developments are currently weighing on the rupee, though he expects a favourable trade deal with the United States to ease the strain, and traders noted that the currency’s decline to 88.71 was also influenced by a stronger dollar and fading hopes of a near term Fed rate cut. Malhotra added that Indian banks are performing well enough that some may soon enter the global top 100 and highlighted strong early results from the RBI’s MuleHunter AI tool, which is now detecting about twenty thousand mule accounts each month as more banks adopt the system.
Russian oil loadings for India plunge as sanctions hit today (Financial Express)
India’s crude imports from Russia remain high for now as refiners stocked up ahead of the November 21 sanctions deadline, but new loadings have fallen sharply and Reliance has already halted Russian crude at its Jamnagar export refinery, signalling that flows are set to decline noticeably through December and January as refiners avoid dealings with OFAC designated suppliers like Rosneft and Lukoil. Analysts say Indian buyers will need time to redesign contracts, shipping routes, ownership structures and payment channels, and while Russian barrels will not disappear, they are increasingly being moved through opaque methods such as shadow fleets, ship to ship transfers and undisclosed cargoes amid unusual mid voyage diversions between India and China. As Russia linked supply becomes riskier, Indian refiners are shifting toward West Asian, Latin American, African and North American crude despite higher freight costs, and the longer term trend will depend largely on how aggressively Western nations enforce secondary sanctions and whether more sweeping restrictions are introduced.
Resilient domestic economy gives India space to negotiate U.S. trade deal, sources say (The Economic Times)
India has been able to negotiate with more confidence in its ongoing trade talks with the United States because its domestic economy remains strong and the impact of Washington’s steep tariffs has been milder than expected, with exports to the U.S. falling less sharply in October and exporters cushioning the blow through discounts, longer delivery timelines and diversification into African and European markets. Officials believe that Washington may eventually roll back its 25 percent tariff linked to Russian oil purchases and settle around a 15 percent overall rate, while New Delhi is prepared to cut import duties on most goods except sensitive sectors like agriculture, supported by domestic tax cuts, targeted relief measures and a solid 7 percent GDP growth pace that together help exporters stay competitive. Despite this resilience, exporters warn that competition from cheaper Chinese goods is intensifying across global markets and India’s non U.S. exports fell more sharply in October, suggesting that the broader trade environment remains challenging even as talks with Washington inch closer to a potential deal.
