MUMBAI: India’s efforts to steady the beleaguered rupee are likely to get harder in the coming months, as insufficient capital inflows replace speculative bets as the main pressure point.
The Reserve Bank of India (RBI) took aggressive steps recently to curb speculation, yet the currency fell to a record closing low on Wednesday. With the US-Iran war – now entering a third month – keeping oil prices elevated, and capital inflows muted, economists are widening their estimates of the nation’s balance of payment deficit.
