Question
In May 2013, US had hinted about increasing the interest rate after a long regime of almost zero interest rate. Interest rate were kept low
In May 2013, US had hinted about increasing the interest rate after a long regime of almost zero interest rate. Interest rate were kept low to allow the economy overcome the global financial crisis. Rupee fell sharply during the period May to August 2013 as intent to raise interest rate was shown by US. Investors had fled India. Recently, the US increased the interest rate once again after a long stint of low interest rate (to fight the COVID inflicted slowness in the economy). But, rupee didn't fall though some analysts expected the rupee to fall. Why do you think the rupee stayed stable this time?
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