The rupee looks vulnerable

April 30, 2012

India’s ballooning trade deficit means it has to run just to stand still. Without steady capital inflows, the currency will collapse. The rupee’s 19 percent fall against the dollar over the past year is worrying. Predictions of further decline could become self-fulfilling.

India in depth: Let rupee sink to save the economy

August 21, 2013

Allowing investors to drive down the currency is the least bad of all options. Trying to stem the slide with capital controls and higher interest rates will badly backfire. Abandoning the defence of the rupee will allow India to shift focus to boosting exports with tax cuts.

Emerging market currency rescue is a pipe dream

September 2, 2013

India’s idea of group-selling dollars to prop up emerging market exchange rates would be a tough sell. Participants would be asked to spend their reserves to help others, and probably lose money in the process. The best thing India can do is to revive sputtering growth.