Taper Tantrum Playbook Is Key for RBI as Rupee Sets New Lows
- Currency’s near 7% drop this year evokes memories of 2013
- Outflows and worsening external finances weighing on rupee
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With rupee sliding to fresh record lows almost every week, analysts say India’s policy makers can take a leaf from their 2013 taper tantrum playbook to curb further losses.
The currency has declined almost 7% this year, bringing back memories of the selloff nearly a decade ago, when fiscal and current account deficits also widened, inflation accelerated and US Treasury yields rose.