If India's elections mirror the results of the exit polls, the rupee will likely receive a short-term boost, says Dominic Bunning, FX Strategist at HSBC.
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India's rupee is at more than seven-month highs, but the central bank governor isn't yet worried about the rise or whether it will affect exports.
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Paul Mackel, Head of Asia Currency Research at HSBC, says the rupee's outperformance during the emerging market selloff could mean that it no longer belongs in the "fragile five."
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Chris Walker, FX strategist at Barclays, says the rupee looks like an attractive currency to buy as India has seen a "sharp turnaround" in its current account deficit.
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India is making a big move to internationalize its currency through a deal with the World Bank to launch the first offshore rupee bond program.
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Similar to the Big Mac index used to measure purchasing power parity, Mcdonald's newest burger, the "McAloo Tikki" is an indicator of how badly Indians will be hit when they travel abroad given the rupee's recent slump.
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Rahul Chadha, Co-Chief Investment Officer at Mirae Asset Global Investments expects exports to pick up due to the Indian rupee's slide. He says investors with a 2-year view should remain positioned in India.
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While the free-fall in the rupee threatens to worsen India's economic fundamentals by widening the trade deficit and stoking inflation, the country's citizens living overseas aren't sweating it.
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