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Capital flows to decide fate of rupee: RBI

Subir Gokarn says all options available to stem currency?s slide will continue to be used

The Reserve Bank of India (RBI) on Monday said capital flows would determine where the Indian currency was headed. The rupee has fallen 4.3 per cent against the dollar since the month began, despite RBI’s intervention and administrative measures. On Monday, the currency closed at an all-time low of 55.03, prompting the central bank to restrict currency futures trading and curtail arbitrage opportunity. “It has been touching lows regularly. There is strong pressure on the rupee to depreciate,” Subir Gokarn, one of RBI’s deputy governors, said on Monday. “This is ...