The Indian rupee slumped today as attempts of policy makers to prevent further currency’s depreciation actually made investors less willing to bring money into the country. Uncertainty about stimulus tampering by the Federal Reserve did not help the currency either.
The Reserve Bank of India announced this week that it is going to take measures for reducing capital outflows out of the country. Traders did not welcome the news as they were concerned that such actions can make the market excessively regulated. Forex market participants are unsure about future policy of the Fed and uncertainty makes them less willing to risk and buy currencies of emerging economies.
USD/INR advanced from 61.4300 to 61.7650 as of 10:10 GMT today.
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