Foreign Exchange

The U.S. dollar is experiencing renewed strength, reaching a two-month high and impacting currencies like the Australian dollar and British pound, reflecting broader risk aversion and potentially tighter monetary policy expectations. Recent data from the Reserve Bank of India indicates robust foreign exchange turnover, suggesting continued activity in the market, while India's foreign exchange reserves increased by $11.3 billion week-on-week. Furthermore, Thomas Cook India’s report highlights a significant shift in forex demand, with Tier 2 and Tier 3 cities now accounting for over half of the total and a growing preference for digital transactions, signaling evolving consumer behavior and diversification in travel spending.