Why the rupee may fall to 70 against dollar
The Indian rupee improved stridently on Tuesday after key regulators took steps to restrain speculative trading in the currency, but some gains were knocked off in minutes and the currency was back below the psychological barrier of 60.
The principal problem seems to be India’s huge current account deficit, which hit a record high 4.8 per cent of gross domestic product in fiscal year 2013.This deficit was being financed by foreign money for last many years, but as the U.S. economy gathers momentum, there is increasing likelihood that the Federal Reserve will taper its bond buying programme (also called quantitative easing) […] Read more