Rupee Plunge Sees India Turn to 2013 Taper Tantrum Playbook

India’s central bank is being urged to consider its 2013 taper tantrum toolkit and earlier balance-of-payments crisis responses to defend the rupee. The piece signals renewed pressure on the currency and raises the prospect of more active policy and liquidity management, but it does not report a concrete action or new data point.

Analysis

India’s central bank is being urged to consider its 2013 taper tantrum toolkit and earlier balance-of-payments crisis responses to defend the rupee. The piece signals renewed pressure on the currency and raises the prospect of more active policy and liquidity management, but it does not report a concrete action or new data point.