Thursday, May 17, 2012

RBI can’t save the rupee

.....Intervention can be useful only when the pressure on the currency is transitory. RBI has already spent more than $20 billion this year until two months ago in defending the rupee. Reducing day-to-day volatility and smoothing out currency depreciation has few known benefits. Further, the current pressure on the rupee is not caused by temporary factors......

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