Currency conundrum

RBI has done well to contain excess volatility

The outbreak of Covid-19 is resulting in widespread economic dislocation across the world. While the global economy is likely to slip into a sharp recession, economic activity in an emerging-market country like India has also been severely affected. The impact of the pandemic on economic activity and the ensuing uncertainty have resulted in a wider sell-off in risk assets. Global portfolio managers, for instance, pulled out over $80 billion from emerging markets in March. Foreign portfolio investors sold Indian stocks and bonds worth over $15 billion in March, resulting in significant volatility in both the markets. The benchmark stock-market indices