Caution is still warranted with the rupee. Tapering has been postponed, not completely eliminated from the conversation. The current account deficit is wide because India must import most of its energy needs and the government has proven basically impotent in thwarting consumer demand for gold.
Interestingly, some investors are betting on increased near-term stability for the rupee. ICN had $27.9 million in assets under management in late August. That number is up to $31.3 million as of Tuesday.
WisdomTree Indian Rupee Fund
ETF Trends editorial team contributed to this post.