Among all the different layers of financial market volatility, stress in emerging markets is one of the reasons behind the lower global growth expectations from the IMF. Speaking of emerging markets, the currencies of both India and Pakistan remain under the radar while oil markets remain volatile in the lead up to re-imposed sanctions on Iran starting from next month.
It had been widely reported for some time that the finances of Pakistan remain in rough shape but investors still reacted negatively to this development, which represents the 13th time Pakistan has approached the IMF for help since the late 1980s.
The external environment remains very challenging for India. The combination of prolonged strength in the dollar, a widening currency-account deficit and an ongoing rally in the price of oil are just a few of the many reasons behind the selling pressure on the Indian rupee.
In this edition of Inside AB, Jeremy Lawrence and Bernd Debusmann take a look at the reasons for the falling values and try to predict what happens next.
(Source: Arabianbusiness.com YouTube channel)