India’s currency, the rupee, continued to slump as foreign investors pull their money out of the country.
The exodus comes with India facing stiff economic challenges and being hit by volatile global financial markets.
The rupee is at an all-time low against the US dollar having lost over 20 percent of its value this year.
Policymakers are struggling to find ways to convince the markets that they can stabilise the rupee and attract funds into the country.
Extraordinary measures taken by the central bank so far have failed to stop the rot.
Foreign investors are selling shares in Indian companies – 2.7 billion euros worth since the start of June.
They are also ditching Indian government bonds
India badly needs foreign capital as it struggles with a record high current account deficit and as economic growth slows.
Adding to the problem the prices of oil and gold – the country’s two biggest imports – have surged.