India suffers fresh currency concerns

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India suffers fresh currency concerns
In this article, the author discusses how India`s currency has been performing in the past few months. The rupee has dropped to Rs62.60 against the US dollar despite the fact that head of Reserve Bank of India raised interest rates to support the country`s currency. The continued faith of global investors has helped India`s currency from experiencing more drops. This is because amid the recent tumult, little foreign money flowed out of equity markets. The rupee`s sharp drop depicts that returns in dollar terms is much less positive. Another issue under scrutiny is inflation. Increase in interest rates has brought in a hawkish stance, as the central bank embarks on renewing its fight against rising prices. A series of more increase in the interest rates is expected to hit India`s economy. Markets are expected to be volatile, up and down, and earnings are also expected to drop wi...