Rupee: Talk is cheap

The rupee has had its fastest two-week slide in post-1992 history — a depreciation of 7.3 per cent. Yes, a history that includes the period of the East Asian crisis of 1997-98 (6.4 per cent slide), and the period following the Lehman debacle of September 2008 (5.6 per cent decline). How did this happen, and more importantly, why did this happen? There is no reason that the rupee should be sliding at the fastest pace ever in October and November if the fundamentals have not drastically changed. But have they? If not, then can one conclude that management of the rupee was at fault?

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