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Yuan emerging as a strong benchmark for rupee, say currency dealers

While it hasn't been officially confirmed yet if RBI is intervening in currency market in tandem with the yuan, the market itself has been adjusting based on how China treats its currency

rupee yuan
Tracking yuan movement is important for the market because the rupee has recently significantly outperformed its trading peers

The Chinese yuan is increasingly becoming the key gauge to determine the movement in rupee-dollar exchange rate, currency dealers say.   While there is no official acknowledgement yet if the Reserve Bank of India (RBI) is intervening in the currency market in tandem with the movement with the yuan, the currency market itself hasm for some time, been adjusting its positions based on how China treats its currency.   The reason for this is to preserve India’s export competitiveness. Not only is China an export competitor, but other currencies in the ...