New Delhi, Aug 28: The falling rupee made a partial recovery on Wednesday afternoon after breaching past 68 per dollar but is it enough? On Tuesday, the currency saw its biggest daily percentage fall in 18 years.
Experts said that it was not possible to make any realistic predictions on the rupee anymore. Foreign investors sold nearly $1 billion of Indian shares throughout Tuesday, giving rise to worries for stocks have been a strong source of capital inflows.
Attracting foreign capital is an urgent step that the country has to take given its high current account deficit. The policymakers have failed to arrest the slide and take the market into confidence. And besides the domestic concern, there is also another concern gradually surfacing and it is the fear about a possible US-led military strike against the tyrannical Syrian regime in the wake of the bloodied civil strife.
The prospects about yet another war breaking out in West Asia have already affected the Asian markets.
The government, as a matter of hope, spoke about setting up a task force to delve into currency swap agreements, which experts believe could bring some breather if carried out in full earnest.
The rupee has witnessed a massive fall this year, the most among all Asian currencies.