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Opinion

Defend the rupee -- or sink into debt

India must stop the currency's fall or risk corporate foreign exchange loans going bad

| India
A weaker rupee will hurt India as a whole more than it benefits the country's exporters.   © Reuters

The Indian rupee has weakened by roughly 9% against the U.S. dollar since January and is now the worst-performing Asian currency this year.

Given the country's declining foreign exchange reserves, sluggish exports, increased overseas commercial borrowings and a hawkish U.S. Federal Reserve, the pressure on the rupee is likely to continue.

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