The Indian rupee over the past month has faced its worst slide since the global financial crisis hit in late 2008: it dropped by 7 per cent in September. The currency will depreciate further, or at best stay at its current level over the next three to six months. This is broadly in line with our frequently stated views about the most important drivers for the rupee, which are the central bank’s policy of benign neglect towards the exchange rate and the worsening global economic...
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