EMs wobble — rupee under pressure
Emerging markets are taking hits after central banks held rates — investors are fleeing to safe U.S. assets and India’s markets corrected sharply as USDINR traded near 93.2750 ( ). Indian CFOs say rupee depreciation plus rising oil is squeezing forecasts and balance sheets, forcing corporates to reprice imports and hedge exposure (cfo.economictimes.indiatimes.com).
The Federal Open Market Committee voted 11–1 to keep the federal funds rate at 3.5%–3.75% at its March 17–18 meeting and the Fed’s statement and projections still show one rate cut pencilled in for 2026. (cnbc.com) Wall Street sold off after the decision — the Dow lost roughly 750 points while the S&P 500 and Nasdaq also slid — as investors pushed into U.S. Treasuries and other safe-haven assets. (finance.yahoo.com) U.S. 10‑year Treasury yields rose to about 4.21% on the day, and currency strategists flagged a renewed safe‑haven bid in the dollar as Middle East tensions and delayed Fed cuts amplified demand for U.S. assets. (cnbc.com) In Mumbai, the rupee plunged to an intra‑day record close of about ₹92.63 to the dollar on March 18–19 as crude surged and foreign selling intensified. (thehindu.com) Traders and market reports say the Reserve Bank of India has intervened in FX markets to try to stem losses, even as benchmark equity indexes confirmed a technical correction after falling roughly 10% from their recent highs. (tradingeconomics.com) Foreign portfolio investors sold about ₹52,704 crore of Indian equities in the first half of March, including a single‑day FPI outflow of roughly ₹10,717 crore, intensifying pressure on both stocks and the currency. (economictimes.indiatimes.com) CFOs at exporters and logistics firms report running stress tests and increasing cash buffers as Brent traded near the low‑to‑mid $100s per barrel (the CFO survey cited Brent around $108), with Aneel Gambhir (DTDC) and Sneha Oberoi (Suzuki Motorcycles) flagging higher freight, insurance and transit‑route costs as immediate margin squeezers. (cfo.economictimes.indiatimes.com)
