Reserve Bank of India: The surprising reason behind Rupee's continued fall

The RBI has for long maintained that it steps in only to curb undue volatility and doesn't target any currency level

The worst run of rupee losses in 16 years is set to extend. Only this time, the declines might not be triggered by oil but by the surprise move by India’s central bank to hold rates despite the currency’s free fall.

The rupee, which has fallen for six straight months in the longest stretch since 2002, is seen sliding to 75 per dollar by year-end, according to median of 10 analysts surveyed by Bloomberg. The December-end estimate has inched up from 69 at the start of September.

Reserve Bank of India Governor Urjit Patel’s comments Friday that the rupee’s drop is moderate