- The rupee has hit yet another low of 64.175 to the dollar, although the currency is now at 63.565 amid speculation of intervention by the Reserve Bank of India.
- India's Sensex drops again, declining 0.1%, although that's up from earlier lows.
- "The rupee is at risk of completely losing its anchor," says UBS strategist Bhanu Baweja. UBS has predicted a drop to 70 to the dollar, but "no rupee forecast is sacrosanct.
- What investors want is economic reform, not the quasi capital controls that were announced last week.
- "There is no focus on improving productivity, infrastructure or getting FDI (foreign direct investment) back," says Nomura credit analyst Pradeep Mohinan. "It's all about stemming the flow of currency and that is not the cause of the problem."
- Expectations that the Fed will soon start tapering are also hurting the rupee.
- Companies that have been affected by the currency's slide - for better or for worse - include Cummins (CMI), Cognizant Technology Solutions (CTSH), and Starwood Hotels & Resorts Worldwide (HOT).
- ETFs - Stocks: INDY, EPI, PIN, INP, INDA, INXX, SCIF, SCIN, INDL, SMIN. Currency: ICN, INR
RBI steps in to stem rupee's freefall
Aug 20 2013, 03:56 ET