When the rupee is likely to come under pressure, can debt and equity markets be left far behind? Oil prices are climbing again, and this will necessarily lead to increased dollar demand, putting pressure on the rupee. To be sure, any sharp fall in the rupee on Monday could well be termed knee-jerk. Net capital inflows, especially in the face of global uncertainty, will ultimately decide whether the rupee can pull back from this 70-to-a-dollar type of forecasts. The rupee has shed just 0.3% in the one month since Bharatiya Janata Party member of Parliament Subramanian Swamy unleashed a serious of vitriolic attacks against the central bank governor.

Source: Mint June 19, 2016 11:48 UTC