Are elections bad for the rupee?
Aug 31st 2013
Despite the best efforts of the central bank and the government, the rupee has now lost about 16% of its value against the dollar since the start of the year. That reflects the global sell-off in emerging markets, but also the dimming of India’s economic miracle over the last two years and the prospect of a messy election, due by May 2014. Opposition politicians are particularly keen to lay the blame at the government’s door. Some investors fear that the upcoming poll will encourage a bout of irresponsible populism.