22.08.2013 - Canada caught up in India’s currency crisis
A sharp decline in India’s currency and stock markets, while half a world away, may resonate in Canada as the weakness undercuts demand for commodities. India’s rupee continued its steep fall Wednesday, hitting a record low against the U.S. dollar. At the same time, India’s main stock market index hit its lowest point in almost a year. Most analysts blame the declines on signals from the United States’ Federal Reserve Board that it will soon begin trimming stimulus spending. Cutting back on that stimulus will shift funds back into the U.S. from emerging markets – including India – which had gained over the past years from strong inward capital flows, as the availability of cheap credit prompted investment in emerging markets...............................................Full Article: Source
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