ONE WAY STREET

Business Today - - THE BUZZ - Anand Adhikari

THERE IS NO RE­LIEF for a de­pre­ci­at­ing ru­pee against the US dol­lar. This week, the Re­serve Bank of In­dia’s re­fusal to use its in­ter­est rate tool for pro­tect­ing the cur­rency seems to have ended up cre­at­ing more trou­ble for the ru­pee. The ru­pee is inch­ing to­wards 75 to a dol­lar. The RBI in­ter­ven­tion has also slowed down as seen from the steady level of forex re­serves, that de­clined by $25-30 bil­lion. The IL&FS de­ba­cle and tremors in the NBFC sec­tor have also fur­ther pushed down the stock mar­ket, cre­at­ing a panic like sit­u­a­tion for for­eign in­vestors to exit In­dia. The way bad news is pil­ing up glob­ally, from high crude oil prices to trade wars, the out­look for the ru­pee looks neg­a­tive. There are some hints that the RBI will come out with ad­min­is­tra­tive mea­sures to re­strict dol­lar out­flow but un­til then it is a one-way street.

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