Statsguru: Rupee slid as RBI didn't intervene as much as was expected

Rupee is not alone in the fall against the dollar

Dollar is rising against major currencies globally

The rupee’s 11 per cent year-to-date decline against the US dollar should not come as a surprise, considering that other emerging market currencies (Chart 1) are also witnessing a rout. Investors are particularly harsh on countries that run current account deficits (CAD).  India runs twin deficits. Its CAD of 1.9 per cent of gross domestic product in the fourth quarter of fiscal 2017-18 widened to 2.4 per cent in the first quarter of 2018-19. Under a similar situation in the past, the Reserve Bank of India (RBI) had intervened, or supplied dollars to stabilise the ...