RBI Should Dial Back Rupee Intervention, Former Governor Says

The Reserve Bank of India should temper its currency intervention efforts, and continue with measures to open up the nation’s markets, a former governor said, about a month after the monetary authority imposed sweeping curbs to support a struggling rupee.

The central bank should let the exchange rate weaken to send the correct price signals amid rising import costs and foreign fund outflows, Duvvuri Subbarao, governor of the RBI from 2008 to 2013, said in an interview last week.