A temporary aberration?
Commerce Minister Kamal Nath has termed the Indian rupee's fall against the dollar as a 'temporary aberration,' but said that the lower value of the rupee will help boost export growth.
But even as foreign funds withdrew money from the Indian markets and the oil prices kept going up, India's huge foreign currency reserves -- pegged at $289 billion that is enough to cover for almost a year's worth of imports -- have helped a lot, for even if FIIs take away funds India will not face a solvency crisis like it did in the early 1990s.
Image: Tourists and Indian nationals wait for service at a foreign exchange centre in Mumbai. | Photograph: Sebastian D'Souza/AFP/Getty Images
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