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From growth slowdown to equity outflows: Why the rupee has lost its mojo

The rupee is set for its worst monthly loss in six years and some analysts warn of more pain to come

Rupee, Currency, Indian currency

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Kartik Goyal and Subhadip Sircar | Bloomberg
The rupee’s resilience in the face economic headwinds has come to an end, with India’s currency losing its year-to-date gains in the space of just one month. 

The country’s massive domestic market is now dragging on the rupee as growth at home slows, foreigners pull cash from local equities and the currency increasingly tracks moves in the yuan as the trade war heats up.

“Even though India is directly less vulnerable to US-China tensions, it can’t remain completely insulated to the wider risk aversion,” said Dushyant Padmanabhan, a forex strategist at Nomura Holdings Inc in Singapore. The economic slowdown and capital outflows
Topics : Rupee

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First Published: Aug 28 2019 | 9:56 AM IST

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