5 reasons why rupee recovery may not last

One of the primary reasons for the recovery in the equity markets was stability and recovery in the currency market. Rupee has recovered nearly 11% since RBI governor Raghuram Rajanintroduced measures to stem the slide. The currency also received help from Federal Reserve chief Ben Bernanke when he announced postponing of the tapering (its liquidity infusion) program. The rupee was within sniffing distance of 70 but has since recovered and currently trades at 61.50. The on-going shutdown in the US has also raised hopes that tapering would be postponed further, giving markets a leg-up. So are we out of the woods or is this just a pause before the slide continues. It is clear that the measures taken by the central banker and the events that have unfolded are all time-bound. What the rupee has got is only some breathing time. Here are five reasons why the rupee will continue on its ride downwards

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