Gene Fang, associate managing director - Sovereign Risk Group at Moody's Investors Service, spoke to CNBC-TV18 about the embattled rupee and the ongoing US-China trade skirmish.

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Speaking about the emerging market currencies, Fang said, “I think the market is reacting to news of the heightened trade tensions between the US and China. The fact that the Chinese won’t be engaging with US in talks and that is putting a lot of pressure on emerging market currencies and driving investors to safe havens.”

Talking about the government’s measures to stem rupee's fall, Fang said, “We do think that the measures will have a moderate effect at most and indeed I think the kind of capital control will take some time for investors to consider. So we do think that those recent measures will take some time to have effect. However, we do think that the overall impact will be fairly modest and that these measures themselves probably won’t reverse the decline that we are seeing in the rupee.”

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