Why Rupee becomes Asia's worst performer?
According to sources the
risk of overseas investors in rupee bonds getting caught wrong-footed and
weakening
Furthermore any sell-off in foreign holdings of Indian corporate and government bonds may set off a spin which weakens the currency further. Reportedly the surge in inbound investments into rupee bonds was largely driven by carry trades, adding to fears of a quick reversal in flows if the drop in rupee is not checked. Currently the currency slumped more than 3% against the greenback this month, setting it up for its second worst monthly loss in four years, as {{RelevantDataTitle}}