Nicaragua wants to involve Indian businessmen in a $40-billion project to connect the Pacific and Atlantic Oceans by a mammoth canal. The project has been awarded to a Chinese entrepreneur and will be longer than the Panama Canal, but some doubt if it will ever be completed.

The canal faces opposition from environmentalists as it will cut across a major freshwater lake. It is likely to be used by super large tankers carrying shale gas to Asian markets and India is among those countries that could get gas from the U.S.

  Cause for nosediving of Rupee against Dollar
  India,however is not the only country suffering from weak currency.The emerging economies like  Brazil, Indonesia, Russia, Turkey and South Africa are also witnessing a huge currency volatility.
What are the causes for depreciation of Rupee?
1)Domestic causes
2)Global  causes
Domestic cause
(i)High Current account deficit
(ii)Growth concerns
Global causes
(i)  the recovery in the US economy is expected to prompt the central bank there to end the loose monetary policy by the year end. Anticipating this, foreign investors are pulling out their money from India to invest it back in the US, which is resulting in a scarcity of dollars in India. This is not India specific. All emerging market currencies are witnessing a similar capital flight. US recovery is also boosting the dollar strength.