India is in focus
India is the big domino in the recent emerging market FX mini-crisis. It has a big current account deficit, much like Turkey and Argentina.
The thinking is that massive FX reserves will cushion it but conventional thinking has a way of being wrong.
The US dollar has been making steady headway against the rupee lately.
Naturally, the finance minister is trying to shore up confidence:
Rupee is better off against many global currencies
Most currencies have weakened against USD
RBI certainly doing what's necessary on rupee
Fluctuations will calm down
India is not in the 'trade war business'
Government has consistently maintained a 4% inflation rate
India is certainly a spot to watch in the weeks ahead.
