Rupee depreciation is a managed fall

Effectively, the rupee has depreciated 2 per cent in real terms against a basket of six currencies since January 2017

If there is no currency crisis, the media may invent one. It’s in the nature of 24×7 news coverage that every fall in the rupee in recent weeks should lead to questions as to whether we were facing a repeat of 2013 or worse. The Reserve Bank of India’s (RBI) silence on the subject should have been eloquent enough: What is happening is a managed fall in the rupee consistent with our fundamentals and developments in the global economy. 

The current account deficit increased modestly from $15 billion in April–June 2017 to $15.8 billion in the period April-June 2018. Capital flows