Can the rupee slide be stopped?

We’re now NatWest Group

Come and visit us for all our latest news, insights and everything NatWest Group.


Can the rupee slide be stopped?

India’s economy and currency has taken a battering, yet the worst of rupee depreciation should now be behind us.

Economic Analysis

11 September 2013

Rupees

The Indian currency has been the worst performer in Asia so far this year, plummeting to record lows against the US dollar, the stock market fell 10 per cent in a month and bond yields have surged as investors took fright.

The slide in India’s markets are part of a wider exodus of foreign capital from emerging markets prompted by news that the US Federal Reserve is considering scaling back its bond-buying stimulus. That has raised concerns about India’s ability to finance its current account deficit and prompted Prime Minister Manmohan Singh to insist the country had adequate currency reserves and was not heading for a crisis.

But three important developments in June and July point to a more stable future for the rupee, says Sanjay Mathur, Managing Director and Head of Economics Research, Asia Pacific ex-Japan at RBS.

Read the full article on RBS Insight Hub.

Tagged

Latest news

RBS to help 2.5 million people each year to be more financially capable

RBS has today committed to helping 2.5 million people in the UK each year to improve their financial capability.

RBS to increase lending to sustainable energy sector following £1.1bn securitisation of loans to UK sustainable energy market

RBS has executed a £1.1bn securitisation deal with Macquarie Infrastructure Debt Investment Solutions (MIDIS), which will allow the bank to recycle capital and increase lending to the sustainable or renewable energy sectors.

RBS launches £1 billion Female Entrepreneurship Funding and announces targets to help create at least 50k new businesses by 2023

RBS has today announced a new £1 billion in funding through NatWest to support female entrepreneurs in the UK to scale and grow – the largest intervention by a UK lender focused specifically on female-led businesses.

We’re now NatWest Group

Come and visit us for all our latest news, insights and everything NatWest Group.

Set Tab for lightbox