Archive · 11 Jun 2025
Volatility Expected to Persist Amidst Market Instability
The market is experiencing a lot of ups and downs, making it tough for businesses.
This is due to things like political uncertainty and global events.
The author believes this will continue for a while.
The Reserve Bank of India is trying to help by lowering interest rates, but the Indian rupee is still likely to be volatile.
The author recommends that companies should protect themselves from risks by using strategies.
Trying to guess the market is not recommended.
Market volatility is expected to remain high.
Political instability and global events are contributing to the volatility.
The Reserve Bank of India has cut rates.
The Indian rupee is expected to remain volatile.
Companies should hedge exposures to manage risk.
- Who
- Jamal Mecklai, CEO of Mecklai Financial.
- What
- Market volatility is expected to remain high.
- When
- High volatility is likely to continue at least until the end of the term, and possibly longer.
- Where
- Global markets, with a focus on US treasuries and the Indian rupee.
- Why
- Political instability and economic factors, including uncertainty surrounding the US and the Russia/Ukraine war.
- DXY Volatility Duration
- Rising for 261 trading days
- RBI Action
- Cut rates by 50 bps and reduced CRR by 100 bps
- RBI Stance
- Neutral
- Rupee Volatility
- Expected to remain high
- Unhedged Exposure Performance
- Outperformed hedging by 0.1% over five years