Rupee has Big Worrie:External debt at half-a-trillion dollars A chunk of it due next year, may put pressure on currency
Rupee has Big Worrie: External debt at half-a-trillion dollars A chunk of it due next year, may put pressure on currency The Indian Rupee faces a new threat – soaring external debt. India’s external debt, the amount of money Indians have to repay in US dollars and other foreign currencies, have soared past the half-a-trillion dollar mark that may begin to worry investors about the strength of the local currency. That more than half the amount owed is coming up for repayment next year is a bigger cause of worry for investors and could lead to volatility in a market that is already getting whipsawed by the global trade wars and normalisation of interest rates in the developed world after a decade. At first the situation may not appear to be in a crisis state as it was in 2013 when the currency was pummelled, absence of corrective measures could see Indian financial markets witness wild swings.“The Indian rupee has clearly underperformed other EM currencies in 2018 so far and is d