Traders Debate Whether RBI Will Loosen Rupee Grip on Yuan Moves
- Indian rupee dropped to its lowest closing low on March 22
- Rupee’s sensitivity to the yuan has risen, technicals show
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Recent yuan volatility has spilled over to the rupee, sparking speculation among traders that the Reserve Bank of India may be pressured into loosening its firm grip on the currency.
The rupee slid to a record close on March 22, a day when the yuan fell to a four-month low. That caught Indian traders and analysts off guard as they had become accustomed to the currency trading within a tight range.