Thursday, September 20, 2018

The Indian rupee is the worst-performing currency in Asia this year. We assess whether this reflects heightened external vulnerability, comparing risk metrics in the run-up to the taper tantrum vs. now. The current account deficit will widen, but not to 2012 levels. Reserves relative to external financing needs are higher now. External vulnerability persists but is less acute than in 2012.

IIF Authors

Sergi Lanau

Sergi
Lanau
Deputy Chief Economist
slanau@iif.com

Reza Siregar

Reza
Siregar
Head of ASEAN & India Research, Singapore office
rsiregar@iif.com

Kevin Sanker

Kevin
Sanker
Economist
+1-202-857-3314
ksanker@iif.com

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