Don’t worry about India’s currency. It’s part neutralising disadvantages of US tariffs. And because inflation & global oil prices are low, depreciation won’t have major domestic consequences
Currency value has an outsized effect on national consciousness. Partly legitimately – in a globalised world, currency fluctuations don’t just affect the arcane world of bank street, but also the humdrum of real street via inflation, transaction costs of business etc. But partly also, and more loudly, on the red herring of currency value being a symbol of national virility. Over the last few days, a sharp-ish movement of rupee/dollar to below 90 has triggered a fresh bout of commentary, mostly predicated on the latter.
RBI’s withdrawal or part of a trend?