As concerns over the Federal Reserve scaling back its monetary stimulus rise once again, is the Indian rupee at risk of repeating the violent selloff that took place in May-August?
The rupee has come under renewed pressure over the past two weeks, falling over 3 percent against the U.S. dollar to trade at a two-month low of 63.50 on Tuesday.
“The biggest factor seems to be the back-up in U.S. Treasury yields, the rupee is the most sensitive currency to U.S. yields in the emerging markets space,” said Mitul Kotecha, head of global foreign-exchange strategy at Credit Agricole.
via CNBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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