RBI has the reserves, if not the will, to prop up the sagging rupee

India’s central bank has enough reserves to defend the rupee, according to the State Bank of India and Nomura Holdings Inc., as the currency shrugged off the government’s supportive measures to plunge to a fresh record.

The Reserve Bank of India can sell an additional $25 billion, at least, in the foreign-exchange market, SBI estimates, based on intervention patterns since the 1990s. The nation’s reserves adequacy remains among the highest in the region, says Nomura, adding that forex cover, including the forwards book, could fall by as much as $100.8 billion before reaching the August 2013 levels which triggered a bond