Tuesday, September 01
The rupee’s slide past the crucial Rs 90 mark for the first time against the dollar may become the trigger for companies across consumer electronics, beauty, and cars to raise prices. Such a step could reverse robust sales gains achieved in these segments following the recent tax cuts.Companies who rely heavily on imported parts or fully imported products are a worried lot. Many had held off price hike plans despite rising raw material costs, fearing government scrutiny after the goods and services tax (GST) cuts with effect from September 22.Read more: As Rupee breaches 90, a look at who loses and who gainsMakers of smartphones, laptops, TVs, and large appliances said they will now raise prices by 3-7% from December–January.This will help offset higher prices of memory chips, copper a
India's central bank will tolerate a weaker rupee as the country's external sector confronts multiple headwinds including a wider trade gap and stalling of dollar inflows into the world's fifth-largest economy, three sources familiar with the central bank's thinking told Reuters.The Reserve Bank of India (RBI), which had supported the rupee through aggressive interventions via dollar sales until last month, has allowed the rupee to fall 1.3% in the last seven trading sessions to a record low of 90.42 per dollar.Also Read: The way it's going, will Rupee breach the 100 mark sooner or later?The rupee, down 5.5% on year, is Asia's worst performing currency.By signaling tolerance for a weaker rupee, the central bank is indicating that it will intervene mostly to curb sharp volatility or on any
