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How much more can the RBI intervene?

The fact that we are much better protected today might just explain the RBI's reluctance to bring in a biggish chunk of dollars from NRIs either through bonds or dollar deposits as it did in 2013

rupee, dollar
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Rupee versus dollar. Photo: iStock

Abheek BaruaTushar Arora
The recent debate on the costs and benefits of a falling rupee must have done its bit to reinforce the stereotype of economists as a bunch of people who are pathologically averse to agreeing with each other. That said, the majority of our ilk perhaps concede that another round of rapid depreciation might be detrimental to both the economy and the financial markets and some form of intervention is desirable.

Let’s address the issue of how much more the Reserve Bank of India (RBI) can do to prevent a full-blown run on the currency. In doing this, it might be sensible
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Sep 27 2018 | 8:31 PM IST

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