The Hindu Editorial Analysis : 16th March 2023

16/03/2023

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The Hindu Editorial Analysis

The Importance of Reading The Hindu Editorial: Reading The Hindu newspaper has several benefits, including improving reading skills, facilitating comprehension, staying informed of current events, enhancing essay writing, and more. For individuals aiming for a career in banking, reading editorials is crucial for vocabulary building. In this article, we will examine today’s editorials, provide practice questions, and highlight important vocabulary words.

Pressure on rupee.

The rupee is likely to come under further pressure because of the risk-off 1 sentiment in world markets due to the crisis in Credit Suisse.
The domestic currency – closed at 82.61 in the interbank foreign exchange market on Wednesday, but edged lower towards 82.79 in post- market transactions.
Bankers say that the Indian banking system is unlikely to face any direct impact 4 of the troubles with Credit -Suisse as problems have been brewing in the banking group for some time.
Bankers said that Credit Suisse’s problems were not linked to the Silicon Valley Bank crisis and many felt that the bank – would be bailed out by the authorities in Europe.
Government sources too said that a crisis in Credit Suisse would not impact India as the problem with the bank was largely limited to its home market in Europe and it had a small wholesale presence in India.
“The uncertainty in the market will persist until March 22 when the US Fed will meet to decide on interest rates.
The best case situation for India would be the Fed deciding to pause due to an economic slowdown.
Crude prices and a Fed pause would encourage the RBI’s monetary policy committee to pause as well,” said DBS Bank head of treasury Ashhish Vaidya.
However, dealers say that the market turmoil in Europe and the US would likely spread to Indian equities and this would put further pressure on the rupee. “There is likely to be outflow from foreign in- stitutional investors if there is a risk-off sentiment, which will put pressure on the ex- change rate. There are wild fluctuations in the yield on US treasuries, which is not good for financial markets,” said United Consultants managing partner KN Dey.
IFA Global said in a research note, “The rupee was trading with a weakening bias throughout the session due to dollar demand from importers and foreign banks.”