Crisil data indicates that India’s short-term debt due this fiscal year has risen by 25% from a year ago. Corporate India increased foreign borrowings.
The need to repay or roll over these borrowings has increased the demand for dollar, given the rising apprehensions that the financial sector in advanced countries could become dysfunctional.
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This outweighs the impact of outflows from portfolios from India on the rupee depreciation.
Graphics by Ahmed Raza Khan/Mint
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