Rupee to marginally depreciate against USD in CY25, outperform many of its peers: Report – Newz9

Rupee is probably going to expertise slight depreciation in 2025, pushed by risky international portfolio investor (FPI) flows and a doubtlessly stronger US greenback, as per a Bank of Baroda report.
Despite a 2.8 per cent depreciation in 2024, INR outperformed a number of international currencies, aided by the Reserve Bank of India’s (RBI) energetic foreign exchange market interventions to handle fluctuations.
India’s international change reserves stood at $644.3 billion as of twentieth December 2024, reflecting a positive present account stability and decrease crude oil costs, which have offered essential help to the rupee.
Equity markets poised for a robust begin in 2025
Equity markets, although experiencing a minor correction in latest days, are anticipated to rebound in early 2025. Analysts attribute this optimism to anticipated development in rural spending and elevated authorities expenditure, that are projected to gasoline company earnings.
In 2024, the Sensex and Nifty 50 delivered sturdy performances, rising by 8.7 per cent and 9 per cent respectively. The Sensex crossed the historic 85,500 mark, reflecting sturdy investor confidence. Sectors comparable to actual property, client durables, and IT emerged as high performers, driving vital returns for buyers.
Global fairness markets additionally concluded 2024 on a constructive word. The S&P 500 and Dow Jones in the US reported double-digit beneficial properties, signaling a broad rally. However, market contributors stay cautious as they await the coverage agenda of President-elect Donald Trump, which might introduce recent uncertainties.
The authorities stays dedicated to fiscal prudence, focusing on a fiscal deficit of 4.9 per cent of GDP and a gross borrowing goal of Rs 14 trillion for FY25.
The RBI, which has saved charges regular at 6.5 per cent since February 2023, is predicted to think about a charge lower in its February 2025 coverage assembly to help financial development.