The precipitous drop in the rupee has prompted comparisons to the balance of payments crisis India experienced in 1991, reports Shikhar Balwani for Bloomberg.

“In the near term, we are more cautious on India,” Roland Mieth, senior vice president of emerging markets at PIMCO Asia Pte Ltd., said in the Bloomberg article. “Although an outright credit default remains unlikely, the chance of a sovereign downgrade by one of the major credit agencies is large in the next 12-18 months.”

WisdomTree India Earnings ETF

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Max Chen contributed to this article.