PNN DigitalPNN Digital
    Facebook Twitter Instagram
    Monday, August 25
    Trending
    • Atif Aslam Returns With His Longest-Ever North America Tour, Borderless 2025
    • India-US Trade Negotiations: EAM Jaishankar’s Fierce Stand On ’50 percent’ Tariffs
    • Historic Training on Pest Management in Food Sector Marks Milestone for India’s Food Safety Standards
    • Bigg Boss 19: Salman Khan Teases Contestants – A Shocking Season of Twists Begins!
    • HEC Infra Projects Limited Secures Rs 12.08 Cr Orders Across Water and Energy Infrastructure
    • Shocking Divorce Drama: Is Govinda Really Splitting from Sunita?
    • Sharani Ponguru Unveiled Safalta Ka Raasta – Road To Success, Season 5
    • TikTok’s Big India Tease: A Promising Comeback or Just Déjà Vu in HD?
    Submit News
    PNN DigitalPNN Digital
    Subscribe
    • Home
    • News
    • Business
    • Entertainment
    • National
    • Lifestyle
    • More
      • Sports
      • Health
      • Finance
      • Education
    PNN DigitalPNN Digital
    Home»Business

    Identifying the Next Big Catalyst for India and Other Emerging Markets

    PNN NewsdeskPNN Newsdesk Business 3 Mins Read
    Markets
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Ahmedabad (Gujarat) [India], July 10:  As the global financial landscape braces for a pivotal shift in U.S. monetary policy, Raj Shah, a leading finance and investment expert, offers insightful analysis into how this change could open new doors for emerging markets, particularly India.

    “The biggest driver for emerging markets right now is the anticipated pivot in U.S. interest rates,” says Raj Shah. “If  the Federal Reserve begins to cut rates, the U.S. dollar will likely weaken, and that’s a fundamental trigger for global capital to rotate out of the U.S. and into emerging economies.”

    Why the Dollar Matters 

    A weakening U.S. dollar doesn’t just affect interest-bearing instruments; it impacts currency plays, too. “When the dollar drops, emerging market currencies tend to appreciate,”  Raj Shah explains. “So, investors aren’t just looking at gains from equities or bonds, they’re also gaining from favourable currency movements (typically known as “carry trade”). That’s a double win.”

    A declining dollar has historically been a positive signal for risk assets across developing markets. Shah explains that a weaker greenback enhances returns for foreign investors not just through asset performance, but also via currency appreciation.

    This currency appreciation, paired with lower U.S. rates, sets the stage for a broader capital reallocation. “The U.S. simply cannot continue financing its massive deficit at high interest rates,” Mr. Shah adds. “To reduce the cost of funds, rate cuts are inevitable.”

    Leadership and Policy Transition: A Market Catalyst

    U.S. politics may further fuel this trajectory. With Federal Reserve Chair Jerome Powell’s term ending next year, speculation over his successor is already influencing market sentiment (As we can see that the US 10-year treasury is already reflecting the same). “ President Donald Trump has openly criticised Powell and is signalling that change is imminent. Markets are forward-looking; they will begin pricing in a more dovish Fed leadership even before the transition,” Mr. Shah notes.

    Moreover, the U.S. inflation curve has started to flatten. “The Fed is holding rates steady largely due to tariff-related uncertainties,” says Mr. Shah. “Once clarity emerges on the tariff front, rate cuts are likely to follow.”

    India: A Major Beneficiary- With Caution

    For India, this shift could mean a surge in foreign inflows. “We can expect a significant uptick in liquidity coming into India and other emerging markets on account of carry trade,” says Mr.Shah. “But it’s not without risks.”

    The key threat? Geopolitical instability. “Any flare-up in the Middle East or elsewhere that drives crude oil prices higher could derail the entire investment thesis for India. Energy costs are a critical vulnerability for our economy.”

    Still, India offers avenues for international investors seeking stability. “With platforms like GIFT City (Gujarat International Finance Tec-City), global investors now have streamlined channels to participate in the Indian growth story while managing their currency risks.”

    Conclusion

    As central banks around the world recalibrate in response to the evolving U.S. rate cycle, the coming months will be crucial for portfolio positioning. According to Raj Shah, now is the time for investors, both institutional and retail, to deepen their understanding of macro trends and prepare to seize the opportunities ahead.

    About Raj Shah

    Raj Shah is a seasoned finance and investment expert known for his macroeconomic insights and sharp market foresight. With over two decades of experience in advising institutional and high-net-worth investors, Mr. Shah continues to be a trusted voice in financial commentary and strategy.

    If you have any objection to this press release content, kindly contact [email protected] to notify us. We will respond and rectify the situation in the next 24 hours.

    PNN Newsdesk

    Keep Reading

    Atif Aslam Returns With His Longest-Ever North America Tour, Borderless 2025

    Historic Training on Pest Management in Food Sector Marks Milestone for India’s Food Safety Standards

    HEC Infra Projects Limited Secures Rs 12.08 Cr Orders Across Water and Energy Infrastructure

    Sharani Ponguru Unveiled Safalta Ka Raasta – Road To Success, Season 5

    Hollywood Actor-Producer Prashant Rai Unveils “Pyar Da Rang” : A Soul-Stirring First Ever AI-Created Tribute Inspired by the Air India Ahmedabad Crash

    Kochi Blue Tigers ease past Trivandrum Royals with eight-wicket win

    Recent Posts
    • Atif Aslam Returns With His Longest-Ever North America Tour, Borderless 2025
    • India-US Trade Negotiations: EAM Jaishankar’s Fierce Stand On ’50 percent’ Tariffs
    • Historic Training on Pest Management in Food Sector Marks Milestone for India’s Food Safety Standards
    • Bigg Boss 19: Salman Khan Teases Contestants – A Shocking Season of Twists Begins!
    • HEC Infra Projects Limited Secures Rs 12.08 Cr Orders Across Water and Energy Infrastructure

    Atif Aslam Returns With His Longest-Ever North America Tour, Borderless 2025

    23/08/2025

    India-US Trade Negotiations: EAM Jaishankar’s Fierce Stand On ’50 percent’ Tariffs

    23/08/2025

    Historic Training on Pest Management in Food Sector Marks Milestone for India’s Food Safety Standards

    23/08/2025

    Bigg Boss 19: Salman Khan Teases Contestants – A Shocking Season of Twists Begins!

    23/08/2025

    HEC Infra Projects Limited Secures Rs 12.08 Cr Orders Across Water and Energy Infrastructure

    23/08/2025

    Shocking Divorce Drama: Is Govinda Really Splitting from Sunita?

    23/08/2025
    Facebook Instagram Twitter
    • Legal Disclaimer
    • Privacy Policy
    • Contact Us
    • About Us
    © 2025 PNN Digital. Designed by Primex Media Services.

    Type above and press Enter to search. Press Esc to cancel.