RBI can’t save the rupee
RBI continued to intervene in the rupee spot and forward markets in an attempt to prevent a further depreciation of the rupee. Earlier last month, attempts to contain rupee depreciation started with raising duties on gold imports. But that did not work. Next, caps on interest rates for NRI deposits were raised. But they also did not have the desired effect. In a desperate move, RBI ordered exporters to sell half the dollars in their accounts. But the rupee continued to weaken.