Another day, another record low for the rupee.

[randomness]

From Bloomberg:

For most of 2013, the Indian rupee, like the currencies of almost all emerging economies, has been steadily losing ground against the dollar. Over the last week, though, this drift has become a disturbance as the rupee has gone into free fall, repeatedly plumbing new lows and sending stock markets into a panic. The rupee fell by more than 2 percent against the dollar on both Tuesday and Wednesday this week, each time the biggest single-day declines in its value for more than two decades.

...

At beginning of the year, the dollar traded at 55 rupees; it was just above 60 rupees at the beginning of August. It has advanced more than 10 percent this month to just over 68 rupees, and no one believes the end is in sight.

Comments

[achinhibitor.livejournal.com]

What is it with the rupee? I know that the prospect of the Fed not printing so much money is causing international investors to move money back to the US, but this is something else. It's as if everybody is worried that India's economy is going to tank hard.

I just ran into this: India’s Economic Crisis, including the line "The private sector expands and more prominent companies find it increasingly easy to borrow overseas."

[r-ness.livejournal.com]

Simon Johnson is a smart guy. I used to read his "The Baseline Scenario" blog until he more or less left it in the hands of a (former?) graduate student of his.