As the rupee remained in the doldrums for the sixth session today, - TopicsExpress

As the rupee remained in the doldrums for the sixth session today, here are 10 main reasons which experts feel are responsible for the rupee – which has depreciated as much as 16% this year – to touch new lows each passing day: • Widening Current Account Deficit: The widening gap between what India earns from the rest of the world and what it pays to them is pushing up demand for the dollar and other foreign currencies. • Policy Inaction: Perception of lack of clarity on policy front is also fanning speculative demand wherein the Reserve Bank of India (RBI) on one day said it will tighten liquidity and on yet another said it will inject $1 billion into the market.

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