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    ISAS Briefs

    Quick analytical responses to occurrences in South Asia

    90 : The Fall of the Indian Rupee and the Unholy Trinity

    M. Shahidul Islam

    10 December 2008

    Let us begin with an anecdote first – last year, Lehman Brothers predicted that the Indian rupee (INR) would appreciate to Rs36 per United States dollar (USD) by the end of 2008. Ironically, the former investment bank did not anticipate that it would not be around to witness the reversal of its predictions. This signifies the limitations of currency forecasting.