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India continues to see its currency weaken and the central bank is struggling to keep up the fight.

While a lower currency has had some benefit for local exporters and increase competitiveness (especially as wages rise in China), India's trade deficit is not helped by the falling currency.

Most people are pointing to the government as the culprit as an inability to close the budget gap and failed policy moves to open up the economy have scared off foreign investment.

A weakening rupee could have a meaningful impact on GG investors who hold HDB. While the bank itself will be marginally impacted (aside from any economic slowdown that might follow) because it is almost wholly domestic in its operations (no worries about assets and liabilities in different currencies), the value of its earnings to US investors will be impacted.

How much remains to be determined, but this is something to watch.
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