Indian currency manipulation

The wise approach is to obtain economic and financial stability by having an exchange rate that fluctuates

The US Treasury recently placed India on the watchlist on the issue of currency manipulation. Two of its three tests make no sense, but there are grounds for concern about the third one. India had made great strides on achieving a market-determined exchange rate with Y V Reddy's decisions in 2003 and 2007, and then D Subbarao's decision to stay off currency trading.

In an important reversal of reforms, we have gone back to the pre-2007 conditions. This is inconsistent with the RBI’s statutory objective — inflation targeting — and puts the country in a more vulnerable place. 

The April 2018 release