India’s Efforts to Curb the Rupee Are Getting Harder
- Treasury report includes rare criticism of India FX policy
- Analysts say RBI may need to go slow on intervention
Urjit Patel, governor of the Reserve Bank of India, has been seeking to curb rupee appreciation.
Dhiraj Singh/BloombergThis article is for subscribers only.
India’s currency management just got harder.
The U.S. Treasury said last week it will "closely monitor" the Reserve Bank of India’s policies after a "notable increase in the scale and persistence" of dollar purchases. While it refrained from adding India to its watch list for potential currency manipulators, it noted that foreign-exchange buying had risen to 1.8 percent of gross domestic product in the year through June, just below the Treasury’s 2 percent red line.