RBI should intervene less, let rupee depreciate gradually: D Subbarao

In a Q&A, the former RBI Governor says the situation is very different from the Taper Tantrum and that the rupee has actually risen against some other hard currencies

Amid a recent bout of volatility in the foreign exchange market, former Reserve Bank of India Governor Duvvuri Subbarao told Bhaskar Dutta in an interview that the rupee is tracking fundamentals and that the central bank should let the domestic currency gradually depreciate. While the rupee has recently weakened to new lows to the dollar, the depreciation has been much lower than that seen during previous episodes of volatility such as the Taper Tantrum of 2013 or the Global Financial Crisis of 2008. This is owing to heavy market intervention by the RBI in the form of dollar sales. Edited