RBI Rupee Intervention: Quick Fix Only

 

The RBI’s dramatic step had some effect – the rupee gained against the dollar in early trading – but economists said such stop-gap measures will only work as quick fixes, and without concerted efforts by Delhi toward fiscal consolidation and reform, the rupee is unlikely to recover to a more comfortable Rs50 against the dollar anytime soon.

RBI rupee intervention: quick fix only | beyond BRICS | News and views on emerging markets from the Financial Times – FT.com