Rupee Forwards Rally as India Flags Focus on Financial Stability
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Offshore rupee forwards advanced the most in two weeks after the Reserve Bank of India said the nation’s economic and monetary policies must focus on preserving financial stability as the U.S. prepares to cut stimulus.
Weakness in the local currency, which tumbled almost 15 percent this year, could fuel already “high” consumer-price inflation, the central bank said in its annual report released in Mumbai yesterday. Asia’s No. 3 economy also faces risks from a current-account deficit that’s not sustainable, slowing growth, a budget gap and rising bad loans at banks, it said.