RBI Allows Rupee to Depreciate UPSC - Ia****am.com
The Reserve Bank of India (RBI) has recently adopted a more hands-off approach towards managing the rupee’s value against the US dollar. This shift in strategy marks a significant departure from the bank’s previous stance of tightly controlling the currency to curb sharp declines. The move is aimed at allowing the rupee to depreciate in line with other emerging market currencies, thereby maintaining export competitiveness and reducing the adverse impact of US dollar sales on domestic liquidity.
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