India's DGFT quietly rewrote the Foreign Trade Policy so exporters can now denominate and settle contracts with non-ACU countries in rupees, not just hard currency. Rupee export receipts become eligible for trade-policy benefits and count toward exporters' obligations. That clears a real barrier to rupee internationalisation. Still, analysts warn permission alone won't ignite rupee trade while foreign banks lack easy access to the currency.
The Treasury doubled its long-term bond buybacks to at least $4 billion in an unscheduled, rate-easing intervention after the 30-year yield touched its highest since 2007. Investors read this as Washington capping borrowing costs rather than letting markets set the price, a tradeoff that shifts the pain onto the currency. The dollar took its biggest one-day fall since March, while gold and bitcoin rallied as hedges.
The India-EU free trade pact text has passed its final legal scrub, clearing the last hurdle before both sides sign this year. In force, 93% of Indian shipments gain duty-free access to the 27-nation bloc, while EU luxury cars and wines get cheaper in India. Together the two economies make up a quarter of global GDP.
Three months after India let overseas firms with up to 10% Chinese shareholding invest via the automatic route, 29 proposals worth about Rs 4,895 crore have come through. The money spans IT, AI, pharma, data centres and manufacturing, routed from Mauritius, the US, Korea, Japan and Singapore. The shift removes mandatory prior government approval, though China-based entities themselves and other land-border neighbours still face vetting.