Rupee Drops, and Outlook Grows Darker for India - NYTimes.com:
"MUMBAI, India — The statistical evidence is piling up that India’s economy may be in even worse shape than had been thought."
Hints that the Federal Reserve in the United States may soon shift to a tighter monetary policy have prompted global investors to shift billions of dollars out of financial markets from São Paulo to Jakarta to Mumbai, eroding the value of local currencies in developing economies. But the Indian rupee has fallen the fastest of any emerging market currency in the last month, down 8.1 percent. Broader investor disenchantment with emerging markets has been compounded here by worries about India’s economy, the third-largest in Asia after China’s and Japan’s.
The data was released after stock market and currency trading had ended for the day, despite government promises to stay with the regular Friday morning release. After a week of considerable volatility, the rupee and the Mumbai stock market both had showed modest gains earlier Friday.
“The bulk of it would be hedged,” he said.
'via Blog this'
Posts
No comments:
Post a Comment