The rupee saga is not yet over

It’s not just firms and investors who are panicking at the rupee’s fall into a bottomless pit. Policymakers are trapped, too, leading to repeated assertions that the central bank, the Reserve Bank of India (RBI), will not intervene except to smoothen excess volatility and will not sell “aggressively”, adding for good measure that its “ability to intervene in the forex market is limited”.

Read Full Story>>