The golden rupee | FT Alphaville:
"The Indian rupee’s plunge continues.
As the FT reported on Wednesday, consensus opinion is that the weakness is connected to India’s growing current account deficit and unimpressive attempts thus far to bring it back to reasonable levels.
But Bloomberg on Wednesday alluded to another interesting connection: India’s attempts to suppress gold consumption. For, as the currency weakens in international terms, the greater the cost of gold also becomes for Indians. Indeed, as Bloomberg noted, the price of gold has now hit a record price in rupee terms, threatening jewellery demand in the world’s largest gold consuming country."
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