India’s central bank has spent the last few weeks making a concerted effort to prop up the battered rupee, but its latest rhetoric may have already undone that hard work with the currency back within sight of record lows against the dollar.
The rupee weakened to a two-week low at about 59.92 per dollar on Tuesday, reversing all the gains made since the Reserve Bank of India (RBI) said earlier this month that it would support its currency via monetary tightening measures.
The fall in the rupee followed a statement from the central bank on Tuesday after its monetary policy meeting in which it said it would unwind the recent liquidity tightening measures when stability returns to the currency market.
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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