RBI should not sweat too much over the rupee's great fall: Here's why

The RBI and India's government, at present, are calm, which is a strong posture that must withstand the daily news, media pressure, lobbying and political taunting

The Indian rupee has been sliding against the US dollar in recent days as emerging markets come under pressure. That’s made the currency one of Asia’s worst performers, losing 12 per cent this year.

The rupee’s latest moves have sparked a debate in India. The Reserve Bank’s stated policy is to reduce volatility, rather than target a specific level for the currency. Should the RBI intervene to strengthen the rupee? If so, what precisely should it do and what would the impact be?

A number of factors are pressuring officials to act — not least among them, that the rupee