The Indian Rupee's depreciation bias is alive and well, and RBI's attempts to revive the slowing Indian economy is only hurting the Rupee.
Caveats: The RBI's attempts to support the slowing economy is turning out to be a bane to the Indian Rupee, which was the worst performer in emerging Asian markets this quarter.
As per analysts, the Central Bank is mopping up dollars gushing into local stocks and bonds. Moreover, weakness in the Rupee despite robust inflows is seen as a sign it wants to curb a sharp appreciation in the currency that might end up hurting the country's exports.
The RBI bought has about $18bn of foreign exchange since the end of September, according to estimates by Bloomberg Economics. While the purchases have propelled reserves to a record, the rupee has fallen about 0.7% since Sept. 30. Livemint
The Indian Rupee's depreciation bias is alive and well. Here's an analysis.