The Indian rupee, like its other emerging market peers, is giving jitters to equity investors and corporate India.
Historically, stocks market returns were poor in years when the Indian currency depreciated against the dollar and vice-versa.
This is not surprising, given that India’s imports consistently exceed exports. The rupee’s depreciation makes imports costlier, pushing up operating costs for companies and household budgets.
The former hit corporate earnings while the latter has a negative impact on consumer demand, affecting the overall demand for goo.....