Economics
India RBI Seen Prudent in Spending Forex Reserves to Defend Rupee
- FX reserves at nearly $600 billion, world’s fourth-largest
- Current account gap seen at half of 2013 taper-tantrum level
The Reserve Bank of India headquarters in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
The Reserve Bank of India is once again seeking to defend its currency when the Federal Reserve is tightening.
This time though, analysts expect it to mount a more limited defense, aimed at fending off the worst of speculative attacks rather than holding down a line in the sand when capital flows are shifting globally with the Fed set to hike throughout the year.