<h1>Global Markets in Turmoil: Fed Tapering Fears Hit India's Currency; RBI Steps In to Manage Dollar Demand.</h1> Global financial markets are experiencing turmoil due to fears of early Fed tapering, affecting India's currency volatility. Concerns about policy rates and oil marketing company demand for dollars have added to the instability. Despite these challenges, India has made progress in reducing its current account deficit, with significant improvements in trade figures. The Reserve Bank of India (RBI) has measures in place to manage oil marketing companies' dollar demand and potential rupee pressures. Domestically, growth remains weak, but there are positive signs in exports and the power sector. Inflation is high, but core inflation shows a declining trend. The RBI plans to conduct open market operations to address liquidity concerns.