India’s currency hit its strongest level this year yesterday as hopes grew that a stable and business-friendly government would soon be elected, prompting foreign money to flow into the nation’s markets.
The currency has gained more than 2 percent since the start of the year to reach 60.51 rupees against the US dollar, a position last seen in mid-August last year.
The rupee later that month sank to a record low of 68.85 amid a fiscal deficit crisis and waning investor confidence as the government struggled to boost growth in the face of global economic turmoil, but a flurry of steps from the government to curtail its expenses, initiate reforms and encourage investments, while clamping down on unproductive imports such as gold, have helped restore confidence in India, analysts said.
India’s hardline opposition Bharatiya Janata Party (BJP), led by Narendra Modi, which is considered the most business-friendly party, is expected to trounce the scandal-tainted Congress government in elections that begin next month.
“The India story is being bought into by investors. We are seeing a large chunk of outflows from other emerging markets reaching our shores on the expectation of political stability after the elections,” said Ashtosh Raina, head of currency trading at HDFC Bank.
He said the rupee could strengthen to between 57 and 58 against the US dollar if election results fulfill expectations, while Barclays Bank predicts a pre-election rally in the rupee to push it toward the 59 level.
The Bombay Stock Exchange has also benefited from the optimism of foreign investors, with its benchmark index touching an all-time high on Monday.
Data shows that foreign investors have bought US$8.51 billion worth of Indian stocks and debt since the start of the year, more than half of which was bought this month.
Modi, the chief minister of western Gujarat State, has portrayed himself as a pro-business reformer and a champion of economic development who can turn around India’s slumping economy.
However, the good cheer in India’s financial markets could go into reverse swiftly if investors see signs of political instability emerge after the elections, market analysts warned.
“The slightest signs of political uncertainty or likelihood of a business unfriendly party taking charge could cause deep hurt in the market,” Raina said.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last