Rupee has fallen to its lowest level in six months as foreign portfolio investors continue to pull money out of Indian financial markets. Photo: Pradeep Gaur/MintThe sharp correction in the Indian rupee over the past few days is welcome. It has bought enough dollars to take its foreign exchange reserves to record levels but even that has failed to prevent rupee appreciation. The excess liquidity in the domestic money market also restricts the space for intervention in the currency market. The important question is what a weaker rupee will mean for domestic inflation, especially of fuel prices.

Source: Mint September 27, 2017 18:22 UTC