The Reserve Bank of India has directed state-run oil refiners to draw on a dedicated credit line for their dollar requirements rather than purchasing on the spot foreign exchange market, according to sources. The move is a direct intervention to relieve selling pressure on the rupee by removing one of the largest and most predictable sources of dollar demand from open market trading. Oil refiners are among India's biggest buyers of foreign currency, given the country's heavy dependence on crude imports, making their spot activity a consistent weight on the rupee. By routing that demand through a pre-arranged credit facility, the RBI effectively suppresses the visible bid for dollars without deploying reserves directly. The approach mirrors measures the central bank deployed during the rupee stress that accompanied the Ukraine war in 2022. Analysts will watch whether the rupee stabilizes near current levels and whether the RBI layers in additional tools, including forward market operations or reserve sales, if currency pressure persists.
Pakistan's economy grew 3.7 percent in FY2026, its fastest rate in four years, according to the Pakistan Economic Survey presented by Finance Minister Muhammad Aurangzeb. Growth beat last year's 3.18 percent but missed the 4.2 percent target, with floods, regional conflict, and weaker food exports cited as key drags.
The Union government released an additional Rs 1,09,019 crore in tax devolution to states on August 1, 2026, separate from the regular monthly transfer. The lump-sum release aims to accelerate state capital spending in the July-September quarter, with Uttar Pradesh, Bihar, and Madhya Pradesh among the top recipients.
US mortgage rates have risen to a one-year high as markets weigh Federal Reserve rate uncertainty and Middle East conflict-driven inflation fears. Higher rates increase monthly payments for new buyers and are likely to further suppress housing market activity and refinancing.
Pakistan's Sensitive Price Index rose 13.52 percent year on year for the week ending July 2, 2026, marking 45 consecutive weeks of annual gains. Electricity up 49 percent, wheat flour up 68 percent, and LPG up 44 percent year on year are the main drivers.
