Rupee Rally Faces Limits From Indiaโs Oil and Dollar Problem
The Indian rupeeโs sharp rebound from near a record low is set to lose steam as high oil prices and persistent dollar demand limit the scope for further gains.
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The Indian rupeeโs sharp rebound from near a record low is set to lose steam as high oil prices and persistent dollar demand limit the scope for further gains.
Indian asset managers are restricting fresh investments into gold products ahead of the key festive season when demand is strong, adding to the nationโs efforts to curb appetite for the precious metal amid a historic slide in the local currency.
The Reserve Bank of India is broadening its defenses to steady the rupee, taking some of its strongest measures since the 2013 taper tantrum. That may give the currency a boost as trading resumes Monday, but the question remains: how far is the central bank willing to go as external pressures mount?