How did it start to improve?
Anything special or just reaping in the benefits of the harvest season now?
Indian rupee didn't improve, the US dollar weakened due to federal reserve doing QE infinity (printing money to buy bonds and mortgages) so the Indian rupee got a bounce.
EVERY major currency had gotten stronger against the US dollar ever since QE infinity was introduced
Make no mistake about it, the Indian fundamentals are getting weaker and weaker as the deficits are growing and debts are accumulating at a faster pace plus growth is slowing (growth is shrinking if you ignore the manipulated government figures).
Don't think for one second the rupee is stronger because people are confident in the Indian growth story, it's got nothing to do with India, it's all about the dollar being printed into oblivion thus every major currency is going up against the US dollar.
These Indian members are utterly clueless why the rupee has strengthened.
The rupee will get weaker because once the QE effect dies down, the fundamental forces takes over and the rupee will fall EVEN against the depreciating US dollar.
Indian economy is in a right ole mess, inflation is still very high despite the tight monetary policies, growth is falling apart, Indian fiscal situation is deteriorating to a point where credit ratings agencies are warning Indian rating will be cut to junk status.
The Indian economy is in a grim state and I'm being diplomatic here.
Indian economy is projected to have a budget deficit higher than Greece in 2013, yes you heard that right, even worse than GREECE!!!!
India is the only country that makes Greece look solvent in comparison.
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