Economy

The Indian rupee ended lower against the US dollar, highlighting growing volatility in foreign exchange markets amid geopolitical tensions and evolving domestic monetary policies. Despite opening on a stronger note, the currency reversed gains due to uncertainty surrounding global developments, particularly in West Asia, and regulatory measures impacting banking liquidity. The Reserve Bank of India’s directives to limit overnight positions added further pressure, contributing to intraday fluctuations.

Pakistan has implemented a sharp and unprecedented increase in fuel prices, raising petrol and high-speed diesel (HSD) rates by over 40 percent and 55 percent, respectively. The move comes amid surging global oil prices triggered by escalating geopolitical tensions in West Asia, particularly the US-Israel conflict involving Iran. The government has simultaneously restructured petroleum levies to manage fiscal pressures while limiting the burden on critical sectors. Officials describe the decision as necessary to preserve macroeconomic stability and reduce subsidy dependence.

India’s natural diamond jewellery market is poised for remarkable growth, with projections estimating a valuation of Rs 1,50,000 crore by 2030. According to the De Beers Group’s “2025 India Diamond Acquisition Study (DAS),” this expansion is underpinned by robust macroeconomic fundamentals, including an anticipated 11 per cent annual growth in GDP and personal disposable income (PDI). The report highlights a notable shift in consumer behavior, with natural diamonds transitioning from occasional bridal heirlooms to high-frequency, everyday wear.

In a landmark move to enhance workers’ welfare, the Haryana government has raised the minimum wage for unskilled laborers from Rs 11,274.60 to Rs 15,220 per month, effective April 1, 2026. Announced by Labour Minister Anil Vij and endorsed by Chief Minister Nayab Singh Saini, the hike aims to improve the livelihoods of lakhs of unskilled workers across the state.

Pakistan has dismissed social media claims surrounding the repayment of financial deposits to the United Arab Emirates, calling such narratives misleading and inaccurate. Officials clarified that the repayment of approximately Rs. 25,000 crore (USD 3 billion) is part of pre-agreed bilateral commercial arrangements rather than a sign of financial distress. The deposits, placed with the State Bank of Pakistan, were intended to support external balances under broader economic frameworks.

Punjab is set to strengthen its economic and business infrastructure with the approval of a Rs 250 crore exhibition-cum-convention centre in Mohali. Announced by Industries Minister Sanjeev Arora, the project will be developed over 14 acres in Sector 83 through a public-private partnership model led by Exhicon Events Media Solutions Ltd. Designed to host large-scale national and international events, the facility is expected to generate between 15,000 and 25,000 employment opportunities over the first five years.

Gold prices witnessed a sharp rally, climbing Rs 3,007 to reach Rs 1.53 lakh per 10 grams in futures trade, driven by a weakening US dollar and easing geopolitical tensions following a temporary ceasefire between the United States and Iran. The surge reflects heightened investor demand for safe-haven assets amid global uncertainty, even as short-term risk sentiment improved. On the Multi Commodity Exchange, gold for June delivery rose by 2 per cent, underscoring the metal’s sensitivity to macroeconomic cues.

Foreign portfolio investors (FPIs) have withdrawn Rs 17,689 crore from Indian government securities under the Fully Accessible Route (FAR) since the onset of heightened tensions in the Middle East, reflecting increased global risk aversion, according to data from the Clearing Corporation of India (CCIL). The outflow coincides with rising domestic bond yields and inflationary concerns fueled by surging crude oil prices.

The government of Punjab has approved a significant increase in milk procurement prices under its cooperative brand Milkfed Punjab (Verka), effective April 1, 2026. The revision, ranging between Rs 10 and Rs 15 per kilogram of fat, is aimed at improving farmer remuneration and reinforcing the state’s rural economy. Led by Chief Minister Bhagwant Singh Mann, the move reflects a broader policy focus on strengthening cooperative institutions and stabilizing dairy sector incomes amid rising input costs.

Gold futures experienced a sharp decline of Rs 6,004 to Rs 1.47 lakh per 10 grams on Thursday, snapping a four-day winning streak, following renewed geopolitical concerns over Iran. The drop was largely driven by a surge in the US dollar after former President Donald Trump indicated a possible escalation of military operations in Iran over the coming weeks.