The Indian rupee is likely to be volatile for a while, spelling bad news for companies that have not hedged currency risk
A sudden wave of volatility in the Indian rupee has increased the degree of risk for companies and the financial system as a whole. Over the past three months, the rupee has fallen 12 percent against the dollar and could even slip to the 52 mark if European debt worries persist. Though many analysts foresee the currency clawing back to around 46, they believe that will take a while.
(This story appears in the 21 October, 2011 issue of Forbes India. To visit our Archives, click here.)