New York: Here's a simple lesson for India from the massive, yet unsuccessful, joint Japan-US intervention to prop up the yen: don't squander India's precious forex reserves trying to manage the rupee's exchange rate. Don't become fixated on a particular exchange rate as a symbol of national pride.
Exchange-rate jingoism can be expensive and wasteful. Instead, focus on macroeconomic fundamentals and keeping the economy in sound shape. The exchange rate is ultimately a price, best left largely to the market.
