RBI urged to shore up falling rupee

India’s central bank should step up its fight to curb turbulence in the rupee and ensure the currency doesn’t swing wildly, a senior adviser to Prime Minister Narendra Modi said. “We need a better exchange management policy, a sharper response and a lower time to respond, “Rajiv Kumar, Vice-Chairman of the government think tank NITI Aayog, said last week. “RBI should be acting more smartly to smoothen the volatility rather than see this yo-yo-like movement in the rupee value.”

India has been swept up in an emerging-market rout triggered by rising US interest rates and a stronger dollar. With investors pulling money out of stocks and bonds, the rupee has slumped 6 per cent against the dollar this year.