Dollar Crunch Worries India Traders as Equity Outflows Grow
- Rupee has dropped to a series of record lows in recent weeks
- RBI’s FX strategy accentuating cash dollar shortage: QuantEco
This article is for subscribers only.
Traders in India’s foreign-exchange market are bracing for more instances of dollar shortages, as record outflows from the nation’s equities and deteriorating external finances bite.
Some Mumbai-based banks saw a dollar crunch last week, as outflows from Indian assets add to the pressure, according to Mizuho Bank Ltd. and IFA Global. The rupee dropped to a record low against the greenback on Wednesday.