The elephant and the dragon

International investors have their eyes on two emerging economic giants

India is facing its worst financial crisis since 1991. After the rupee started to fall sharply against major currencies in May and June, the Indian central bank raised interest rates and imposed emergency capital controls on Aug 14 to prevent capital leaving the country.

Since then, at the time of writing, the Indian rupee had fallen a further 10 percent. Sensex, India's main equity stock exchange index, is down nearly 5 percent year-to-date. What is going on? Does it affect China?