More pain likely for rupee on India’s trade gap, capital outflows

[ad_1] India’s widening trade gap and capital outflow are posing new risks for the rupee, just as the currency’s fall to a record low adds to the problem of inflation. “India’s external balance is deteriorating,” economists at Goldman Sachs Group Inc wrote in a note on Thursday. citing a setback in terms of trade from higher commodity prices and weak global growth. “Going forward, the deteriorating external balance is likely to push the trajectory of the rupee weaker against the dollar.” [ad_2] Source link