| In its worst weekly performance in the past nine months, the Indian rupee declined 3% and eventually closed at a record 57.15 against the dollar on Friday. Almost inevitably, the focus is back on the Reserve Bank of India (RBI); and, if outgoing finance minister Pranab Mukherjee’s bluster is to be believed, there will be some serious policy action today from the central bank that will restore the rupee’s mojo.
While this may or may not be true, it is evident that RBI has been taking several steps, including in its mid-quarter monetary policy review, that suggest it has kept the exchange rate in focus...............................................Full Article: Source
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