Courtesy of Mish.
The India Rupee fell to fresh record lows today in spite of panic moves by the Reserve Bank of India.
Rupee 1-Week Chart
Rupee 5-Year Chart
The Rupee is down 5% in a week, 46% in just over two years.
Carry Trade Unwinds
When carry-trade money is pouring in, everything looks fine. Things get messy in a hurry when there is capital flight.
See Mish Video: Troubled Currencies (And There are Lots of Them), Gold, Bernanke, Carry Trades, Bubbles.
Panic Flip-Flop Moves by India Central Bank
The Financial Times reports India gripped by mood of crisis as rupee falls again
The Indian rupee fell to a new low against the dollar on Wednesday and stocks declined after a central bank promise to inject liquidity into the country’s financial markets provided only temporary relief from a deepening sense of crisis….
