Synopsis
India faces risks similar to those in 2013 — an all-time low currency, Fed taper, elevated commodity prices. But 2022 is not 2013. India now has USD600 billion forex reserves, a good current account position, net capital flows, an import cover of 18 months. A depreciating rupee is also an opportunity for Indian investors with exposure to US equities.
That sinking feeling is back – after eight years.There was a sense of déjà vu when the rupee hit a new all-time low of 77.68 against the US dollar last week. And the stock markets followed suit.In many ways, the events have an eerie similarity to what happened in 2013. That year was known for the infamous US Fed ‘taper tantrum’, which roiled financial markets globally, dumped India as part of the fragile-five economies, and made rupee one of the
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