The risk is that a plunging rupee will be seen by investors as reason enough to pull capital out of the country, adding yet more downward pressure on the currency and setting off a balance of payments crisis.
India relies on capital inflows to fund its current account deficit, but self-inflicted wounds and investors` worries about troubles elsewhere has been driving capital away.
The Indian rupee turned stronger
after a brief break yesterday and was quoted higher at 48.25
against the greenback in early trade on Wednesday on the back of
bullish equity markets and dollar sales.
Day in Pics: 4th March
Showbiz World - March 4 2015
10th Annual Caring With Style Fashion Show