Yesterday, the Indian Rupee has dropped down to another local low against the US Dollar. This was a 2% decline down to 65,71. The geopolitical risks are growing since the situation in the Middle East remains unstable. In particular, the possibility of a US military operation against the Syrian government and its army can reduce oil supplies in the area, thereby making oil imports in India much costlier.
The rapid devaluation of the Indian Rupee resulted in the world’s biggest social program. The Indian government is ready to allocate some $18bn in order to supply the country’s poorest regions with free food.
