..........While a lot of views have been expressed over the recent liquidity tightening, RBI’s steps in the last few weeks have to be seen in the perspective of the recent developments in the foreign exchange market. The currency has been a major challenge for the central bank in the recent months. While the rupee has been in a depreciating trend since the global crisis of 2008, the volatility in the exchange rate has increased in the recent months...............
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