Rupee lessons

..............Looking back, it was a series of deft moves by Reserve Bank of India Governor Raghuram Rajan, who took over in early-September last year, that arrested the slide in the currency while hopes that a stable government at the Centre would usher in economic reform and recovery saw it strengthen gradually. Even as the world waited for the US Federal Reserve to take a call on tapering its monthly bond-buying programme, Rajan announced that RBI would provide banks with swaps at concessional rates; banks, for their part, spotted the opportunity to help their overseas clients make a quick buck niftily, loaning them money which would then flow into India as deposits. If the $34 billion of deposits, way above anticipated inflows, took the edge of speculative bets against the rupee, ..........

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