India is spending billions to defend the rupee, but how sustainable is this strategy?
Reuters reports the RBI has used an estimated $75–80 BILLION of the $140B+ raised through special measures to support the currency.
Forex reserves have fallen nearly $60 BILLION from their September peak of $785.7B to $726B.
High crude prices, US bond yields and foreign investor outflows are adding pressure.
The RBI can slow the rupee’s fall by selling dollars, but it cannot fix the underlying problem with intervention alone.
Reuters reports the RBI has used an estimated $75–80 BILLION of the $140B+ raised through special measures to support the currency.
Forex reserves have fallen nearly $60 BILLION from their September peak of $785.7B to $726B.
High crude prices, US bond yields and foreign investor outflows are adding pressure.
The RBI can slow the rupee’s fall by selling dollars, but it cannot fix the underlying problem with intervention alone.