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The Print
05-06-2025
- Business
- The Print
Rupee falls 26 paise to close at 85.87 against US dollar
At the interbank foreign exchange, the domestic unit opened at 85.69 and moved between the high of 85.69 and a low of 86.05 against the greenback during the day. Forex traders said the local unit remained under pressure on geopolitical tensions between Russia-Ukraine and elevated crude oil prices. Mumbai, Jun 4 (PTI) The rupee depreciated for the second consecutive session and settled for the day lower by 26 paise at 85.87 against the US dollar on Wednesday, largely driven by strong dollar demand from importers. The unit closed the session at 85.87 against the dollar, registering a loss of 26 paise from its previous close. On Tuesday, the rupee depreciated 22 paise to settle at 85.61 against the US dollar. The local unit registered the second consecutive session of fall and has lost 48 paise over the greenback. 'The Indian rupee extended its depreciation for a second consecutive day, emerging as the weakest performer among Asian currencies. This decline was driven by strong dollar demand from importers, a lack of intervention, and weaker-than-expected PMI figures,' said Dilip Parmar, Senior Research Analyst, HDFC Securities. On the domestic macroeconomic front, the Indian services growth broadly steadied in May and was underpinned by healthy demand conditions, new client wins and greater staffing capacity. The seasonally adjusted HSBC India Services PMI Business Activity Index was at 58.8 in May, marginally up from April's 58.7. Market participants are now keenly awaiting the outcome of the Reserve Bank of India's monetary policy meeting for direction trade. The Reserve Bank's rate-setting panel started its three-day brainstorming on monetary policy on Wednesday and the outcome is scheduled to be announced on June 6. Experts are of the view that the RBI may reduce the repo rate by 25 bps on Friday and another similar cut in the next policy. SBI research expects the central bank to go in for a 'jumbo' rate cut of 50 bps in June itself. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.15 per cent at 99.07. Brent crude, the global oil benchmark, rose 0.24 per cent to USD 65.79 per barrel in futures trade. 'Technically, the spot USDINR has broken out upwards, forming a bullish chart pattern. The bias for the pair has turned positive, suggesting a further appreciation towards 86.50 in the coming days, with support now established at 85.30,' Parmar added. In the domestic equity market, the 30-share BSE Sensex surged 260.74 points, or 0.32 per cent, to close at 80,998.25, while the Nifty rallied 77.70 points, or 0.32 per cent, to 24,620.20. Foreign institutional investors (FIIs) purchased equities worth Rs 1,076.18 crore on a net basis on Wednesday, according to exchange data. PTI DRR TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
04-06-2025
- Business
- Time of India
Services growth in May stays robust on global demand
NEW DELHI: Activity in service sector remained robust in May as demand from overseas was the strongest in nearly two decades of data collection. There was also a record rise in employment in sector, a survey showed. Registering 58.8 in May, the HSBC India Services PMI Business Activity Index was largely in line with April's reading of 58.7 and signalled another sharp rate of expansion. The 50-point mark separates expansion from contraction in the survey, which is compiled from responses to a question sent to 400 service sector firms. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Print
04-06-2025
- Business
- The Print
Indian services growth broadly steadied in May amid healthy demand conditions
In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction. The seasonally adjusted HSBC India Services PMI Business Activity Index was at 58.8 in May, marginally up from April's 58.7 and signalled another sharp rate of expansion. New Delhi, Jun 4 (PTI) The Indian services growth broadly steadied in May and was underpinned by healthy demand conditions, new client wins and greater staffing capacity, a monthly report said on Wednesday. 'India registered a 58.8 services PMI in May 2025, broadly in line with the steady readings from recent months. Strong international demand continued to fuel services activity, as evidenced by the new export business index's uptick from April,' said Pranjul Bhandari, Chief India Economist at HSBC. As per the survey, new orders rose at a sharp pace largely driven by advertising, demand strength and repeat orders from existing clients. Companies also observed a near-record improvement in international demand for their services during May with faster increases in new export orders recorded in Asia, Europe and North America in particular. 'To keep up with swelling demand, India's service providers heavily increased staff recruitment. Indeed, the employment index rose to the highest reading ever recorded by this survey,' Bhandari said. Almost 16 per cent of panel members reported higher payroll numbers, while 1 per cent indicated a fall. 'The resulting overall rate of job creation was the strongest in the history of the survey,' the survey said. The increase in workforce numbers, coupled with overtime payments, added to firms' cost burdens. Some companies also cited greater outlays on cooking oil, material and meat. Meanwhile, price gauges showed an intensification of input cost and output charge inflation, with rates of increase edging above their historical averages in each case. There was a recovery in business sentiment during May and the upgraded forecasts stemmed from expectations that greater staffing capacity, expanded clientele and marketing initiatives will support activity growth in the year ahead. Meanwhile, the HSBC India Composite PMI Output Index came in at 59.3 in May, down only marginally from 59.7 in April, signalling a further sharp upturn in aggregate activity. The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace. Ongoing improvements in demand for Indian goods and services led to survey-record increases in jobs across the two sectors. Hence, aggregate employment expanded at an unprecedented pace. The HSBC India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. The sectors covered include consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services. PTI DRR ANU ANU This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Hindu
04-06-2025
- Business
- The Hindu
Rupee falls 29 paise to close at 85.90 against U.S. dollar
The rupee depreciated for the second consecutive session and settled for the day lower by 29 paise at 85.90 (provisional) against the U.S. dollar on Wednesday (June 4, 2025), dragged down by risk-averse sentiments and foreign fund outflows. Forex traders said the local unit remained under pressure on geopolitical tensions between Russia-Ukraine and elevated crude oil prices. Moreover, investors are also awaiting cues from the Reserve Bank's monetary policy announcements, they said. The Reserve Bank's rate-setting panel started its three-day brainstorming on monetary policy on Wednesday (June 4, 2025) and the outcome is scheduled to be announced on June 6. Experts are of the view that the RBI may reduce the repo rate by 25 basis points (bps) on Friday (May 31, 2025) and another similar cut in the next policy. SBI research expects the central bank to go in for a 'jumbo' rate cut of 50 bps in June itself. At the interbank foreign exchange, the domestic unit opened at 85.69 and moved between the high of 85.69 and a low of 86.05 against the greenback during the day. The unit closed the session at 85.90 (provisional) against the dollar, registering a loss of 29 paise from its previous close. On Tuesday (June 3, 2025), the rupee depreciated 22 paise to settle at 85.61 against the U.S. dollar. The local unit registered the second consecutive session of fall and has lost 51 paise over the greenback. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.12% at 99.11. Brent crude, the global oil benchmark, rose 0.41% to $65.90 per barrel in futures trade. In the domestic equity market, the 30-share BSE Sensex surged 260.74 points, or 0.32%, to close at 80,998.25, while the Nifty declined 77.70 points, or 0.32%, to 24,620.20. Foreign institutional investors (FIIs) sold equities worth ₹2,853.83 crore on a net basis on Tuesday (June 3, 2025), according to exchange data. On the domestic macroeconomic front, the Indian services growth broadly steadied in May and was underpinned by healthy demand conditions, new client wins and greater staffing capacity. The seasonally adjusted HSBC India Services PMI Business Activity Index was at 58.8 in May, marginally up from April's 58.7 and signalled another sharp rate of expansion.
Mint
04-06-2025
- Business
- Mint
PMI: India's services exports bump may lose steam amid global economic gloom
Business momentum in India's services sector was steady in May. The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.8 last month from 58.7 in April. A reading above 50 indicates expansion. The key highlight of the survey was the solid growth in exports of services. The New Exports Orders sub-index rose to 57.6 in May from 55.4 in April. Survey participants reported one of the strongest improvements in international demand in 19-and-a-half years of data collection. Also Read | India services activity hits three-month high in May on strong export growth; employment rises by record For manufacturers as well, new export orders rose in May at one of the strongest rates recorded in three years. Panel members remarked on favourable demand from Asia, Europe, the Middle East and the US. But here's a catch. 'In H1 2025, Asian economies have been whipsawed by Trump tariffs; growth and inflation have moderated, even as export frontloading has provided some offset," Nomura Global Markets Research said in a report dated 2 June. According to Nomura, disinflationary forces are likely to permeate across Asia, and, unlike past export downturns, this is likely to be compounded by Asian currency strength against the US dollar. Thus, Asian central banks will likely continue to decouple from the US Federal Reserve and deliver more policy easing. In its meeting this week, the Reserve Bank of India is widely expected to cut repo rates by another 25 basis points (bps) to 5.75%. So far, the central bank has cut rates by 50 bps to boost growth amid easing inflation. Relatively immune The Indian economy is more domestically driven, with consumption seen as the mainstay for growth. This makes India relatively immune to global trade shocks than Asian peers, but the problem is that consumption demand, especially urban, has been languishing lately. Companies are struggling with subdued revenue and profit growth, household incomes are muted and latest high-frequency data such as automobile sales is uninspiring. Also Read | India's exports face geopolitical woes but trade deals offer relief: RBI report Meanwhile, business confidence of Indian service providers measured via the Future Output Index recovered to 60.4 in May from April's 23-month low of 59.7. Expanded workforces, larger client bases and ongoing marketing initiatives make service providers hopeful. According to Gaura Sengupta, economist at IDFC First Bank, India's services export growth outperformed merchandise export growth in FY25 also, growing in double-digits. While this outperformance is likely to continue in FY26, she said some moderation in services export growth is likely with the US economy expected to slow down. That said, the manufacturing sector will be impacted more by the tariff tensions and the global growth slowdown. Also Read | Services boost India's exports to an all-time high of $824.9 billion in FY25
