Institution: Indian Rupee Remains Under Pressure Due to Oil Price Pressures, Indian Government May Introduce More Measures

According to Golden Ten Data on May 14, due to unfavorable factors related to oil prices that have persisted for several weeks, the Indian rupee is expected to remain under pressure on Thursday, staying near its historical low. Persistently high crude oil prices have exerted increasing pressure on the currency, which is reflected in the Indian prime minister's recent calls to reduce non-essential overseas travel and gold imports in order to save foreign exchange reserves. Previously, India increased import tariffs on gold to curb the trade deficit. As oil import costs rise, the trade deficit may further widen and lead to a significant deterioration in the current account deficit. Nomura stated in its report that in the coming weeks and months, the Indian government may introduce more policy measures, including restrictions on imports of electronic products, tightening regulations on the "Liberalised Remittance Scheme" (which allows residents to remit up to $250,000 overseas annually), and potentially issuing bonds targeted at overseas Indian diaspora.