MUMBAI: For the most part of this year, betting against the rupee has been a fool’s errand. Traders are now contemplating one key question: why is the Reserve Bank of India steadfastly defending the currency?
Volatility in the rupee is hovering near the lowest in almost two decades and the currency has managed to avoid breaching a record low even as rising US rates wreaked havoc in emerging markets. India’s central bank has denied defending any levels but analysts have an array of theories as to what is going on in policymakers’ minds.
