Publication

This policy brief talks about the inflationary pressures affecting the Indian Rupee. It states that India's Index in Industrial Production (IIP) and its Consumer Price Index (CPI) have been the cause for concern as the Rupee has been subject to high inflation, a burgeoning current account deficit and high gold imports. It claims that in the short term, the rupee is likely to be weak. However, reduction in gold demand, stability in energy prices, coupled with some moderation in food inflation after the rabi harvest, could reduce pressure on the currency.