Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
The recent Rs Fall is not unprecedented. Comparing to 2008/2013. The economic nos are far better than those years. One of main reason of such type of volatility of currencies are restrictive currencyderivative market which augment arbitrage ROI at times it goes as high as 50-30%.it has been witnessed this time also . Crude price and Global scenario is not as bad in comparison to LEHMAN CRISIS in 2008 and 2013 when volatility and depreciation of INR much larger than now. Why NDF MARKET flourish mainly because of restrictive policy of RBI in currency market in garb of Speculation here as other window of Currency exchanges are open to encourage. Thus this is a cycle of every 5 years since 1997 of such bouts.
The recent Rs Fall is not unprecedented. Comparing to 2008/2013. The economic nos are far better than those years. One of main reason of such type of volatility of currencies are restrictive currencyderivative market which augment arbitrage ROI at times it goes as high as 50-30%.it has been witnessed this time also . Crude price and Global scenario is not as bad in comparison to LEHMAN CRISIS in 2008 and 2013 when volatility and depreciation of INR much larger than now. Why NDF MARKET flourish mainly because of restrictive policy of RBI in currency market in garb of Speculation here as other window of Currency exchanges are open to encourage. Thus this is a cycle of every 5 years since 1997 of such bouts.
dr Manmohan Singh in “walk the talk “show , admitted that he intentionally dropped the value of rupee by 25% ,,