Wednesday, June 12, 2013

Does RBI lack firepower to defend Indian Rupee

......A few billion Dollars in sustained intervention is warranted if RBI's efforts have to bear fruit in a meaningful sense. A few billion! But given the current state of affairs, RBI could only shell out only some $500 million. This cannot sway the markets beyond a point to the advantage of Rupee. In other words, RBI lacks the firepower to intervene in FX markets as of now..........

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