The currency declined 2.2% this quarter as global funds pulled Rs 30,000 crore of capital out of India's stock market, the most among regional markets where data is available.
India was among the most affected countries when the Federal Reserve slowed down bond purchases in 2013, known as ‘taper tantrum’, which put pressure on the rupee.
Rising commodity prices may push the current-account into a deficit, while the RBI’s quantitative easing is seen adding to the liquidity glut, worsening the rupee’s woes.
The rupee has so far been a surprise winner this year as expectations of an economic recovery and a rare current-account surplus shielded it from impact of rising US yields.
The RBI in 2019 said that 3,542.9 million notes of Rs 2,000 were printed during 2016-17, which reduced to 46.6 million notes in 2018-19, after which no notes were printed.
RBI Governor Shaktikanta Das said emerging markets need to build reserves as buffers against external shocks even at the risk of being added to US' watchlist for currency manipulation.
Politicians will want their V-shaped recovery at any cost. How RBI manages their demands against threats to financial stability from cheap money is what matters.
India needs to worry about medium-term growth trajectory and see if the current levels of demand are sustainable in future, the former RBI governor says at ASCENT eConclave 2020.
Emerging markets have reasons to be wary of MMT. While every country prints legal tender & collects taxes in its own currency, not all can borrow in them.
From Sam Pitroda talking about inheritance tax to Goan candidate saying the Indian Constitution was 'forced' on Goa, Congress has been having its own foot-in-the-mouth moments.
Another addition to military cooperation has been the Strategic Space Dialogue, inaugurated in Paris in 2023. Last month, India participated as an observer to France’s AsterX.
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