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.
Arvind Kejriwal always played to the gallery promising the moon.But Prashant Kishor has been ‘brutal’ in telling the people that they have to blame themselves for the misrule in Bihar.
Open to public feedback until 26 November, the revised guidelines, among other changes, give CA firms more flexibility to advertise & promote their services.
Bihar is blessed with a land more fertile for revolutions than any in India. Why has it fallen so far behind then? Constant obsession with politics is at the root of its destruction.
COMMENTS