Arresting the rupee slide

ARRESTING THE SLIDE OF THE RUPEE

Smriti Sharma

RUPEE WOES The downward journey started in late 2011

Touched record lows of 68.85/$ in August 2013

Reasons for the downfall of rupee

oHigh current account deficit (Gold and oil)

oLow forex reserves

oPoor investor confidence

oFear of Fed (Reducing bond purchases)

HERE COMES THE HOT-STEPPER

New RBI governor takes charge

Markets respond positively to former IMF Chief Economist

Announces host of measures to support the rupee

WHAT IS GOING ON

ANNOUNCEMENTS

Increase rate of interest on Foreign Currency Non-resident

(FCNR) deposits

Doubled the re-booking amount for exporters and increased the

re-booking amount for importers

Removed capital controls

Non-resident investors could buy listed shares

ALL’S WELL THAT ENDS WELL

Are you sure it has ended…?

Business