# India still vulnerable to 2013-like capital flight due to US monetary tightening, but forex reserves boost resilience

> India's rupee is back under pressure after falling 1.8% over four weeks as the Federal Reserve discusses reducing stimulus earlier. Forex reserves of about $604 billion are expected to cushion volatility, but a slowing economy and wider fiscal deficit leave India exposed to capital outflows.

- Date: 2021-06-28 · published 2021-06-28T12:00:00.000Z
- Category: macro · region India · magnitude medium
- Page: https://feedsoft.ai/events/46885-india-still-vulnerable-to-2013-like-capital-flight-due-to-us-monetary
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

Capital flight and a weaker rupee would raise the rupee cost of imported feed ingredients and could curb Indian buying demand. The risk depends on how the Fed's policy signals evolve.

## Read by commodity

- USDINR: bullish ▲

## Sources

- livemint.com: https://www.livemint.com/economy/india-still-vulnerable-to-2013-like-capital-flight-due-to-us-monetary-tightening-but-forex-reserves-boost-resilience-11624867874997.html

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.