There were sighs of relief in India last week when Federal Reserve Chairman Ben Bernanke unexpectedly announced the U.S. central bank would continue buying Treasury bills and other government securities at a rate of $85 billion a month. Worries over the past few months that investors would flee riskier emerging markets like India in anticipation of better yields on “safe” Treasuries had sent the rupee and India’s major stock exchanges plummeting.
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