What the Rising Rupee Signals C.P. Chandrasekhar

In spite of RBI’s continuous efforts to cope with the excess foreign exchange in the market, the task of managing the exchange rate is proving increasingly difficult and the rupee is appreciating. Given that the scope for “sterilising” has been exhausted, preventing a capital flow-induced appreciation of the rupee requires targeting portfolio flows.

Rising Rupee Signals (Download the full text in PDF format)