"The rupee dipped to an all-time low of 57.9 the dollar on Monday, depreciating by over 1.5 per cent amid renewed concern about the end of quantitative easing in the US.
The root cause was data showing weakness in the Chinese economy and optimistic US jobs data out on Friday. Both pieces of news supported expectations that the US Federal Reserve may soon being reeling in its QE programme.
But A Prasanna, an economist at ICICI Securities, told beyondbrics that the market is also responding to recent signals from the Reserve Bank of India (RBI) that it will not intervene in the currency market."
'via Blog this'
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