RBI expects rupee to hover around 75/dollar; Indian crude basket to average $35 per barrel in FY21
The rupee came under intensified and sustained depreciation pressures from mid-January, reflecting a generalised weakening of emerging market currencies amid flights to safety, RBI said.
Mumbai: The Reserve Bank of India (RBI) expects the value of the domestic currency to hover around Rs 75 to a dollar and Indian crude basket to average about $35 per barrel during 2020-21.
The rupee came under intensified and sustained depreciation pressures from mid-January, reflecting a generalised weakening of emerging market currencies amid flights to safety, RBI said in its Monetary Policy Report.
Taking into account the sizable two-way movements in the nominal exchange rate during October-December 2019, RBI expects the value of Indian rupee to be around Rs 75 to a dollar.
“…the nominal exchange rate (INR vis-à-vis US dollar) exhibited sizable two-way movements during October-December 2019. The INR came under intensified and sustained depreciation pressures beginning mid-January, reflecting a generalised weakening of emerging market currencies amidst flights to safety," the RBI report said.
“Accordingly, the baseline assumes an average of Rs 75 per US dollar to reflect these recent developments,” said the RBI report.
As regards the crude oil prices, the report said “given the current demand-supply assessment, the baseline scenario assumes crude oil prices (Indian basket) to average around $35 per barrel during 2020-21.”
Observing that the international crude oil prices (Indian basket) have fluctuated in a wide range since October 2019, the report said these prices initially increased during late December 2019 and early January 2020 to around $70 per barrel, triggered by US-Iran tensions.
However, the prices subsequently softened to reach $51 by early March in anticipation of lower global demand following the outbreak of COVID-19 and its rapid geographical spread.
Brent prices crashed to $32 on 9 March 2020 following Saudi Arabia’s decision to cut prices and increase production over the failure to reach an agreement with Russia on production cuts.
Brent fell further to $23 on 30 March 2020 while US crude prices dipped briefly below $20. Brent rebounded to $34 per barrel on 3 April, the report said.
Superbug fungus cases rose dramatically during Covid-19 pandemic, reveals study
The new study founds cases have continued to shoot up, rising to 476 in 2019, to 756 in 2020, and then to 1,471 in 2021. Doctors have also detected the fungus on the skin of thousands of other patients, making them a transmission risk to others
Former British PM Boris Johnson fights to keep career afloat in testimony on lockdown parties
The so-called ‘partygate’ scandal ultimately contributed to Johnson’s downfall, after months of reports that he, alongside other senior government figures, had been present at gatherings in Downing Street during 2020 and 2021 when most of the rest of Britain were forced to stay at home
UK parliamentary committee publishes Boris Johnson's 'partygate' evidence
Parliament's Committee of Privileges, which has been looking into statements Johnson made to parliament in December 2021, said last week the former leader would also provide oral evidence to the committee in a televised session on March 22.