Why Exchange Rate Stability Matters More Than Ever for India

As alarmist calls on the rupee clash with the IMF’s own labels, this piece asks why exchange rates matter, and why stability cannot be left to markets alone.

Michael Debabrata Patra

February 16, 2026 at 2:43 AM IST

Currency Valuation: From Competitiveness to Coping Mechanisms

A tour of REER, FEER and BEER shows why currency valuation models often explain discomfort better than they explain exchange rates.

R. Gurumurthy

January 28, 2026 at 11:52 AM IST

Why India Should Stop Treating Currency Depreciation as a Growth Strategy

A weaker rupee no longer guarantees competitiveness. In today’s India, depreciation raises inflation and capital costs—turning a once-useful tool into a macroeconomic risk.

R. Gurumurthy

December 31, 2025 at 8:31 AM IST

How Three Invisible Layers of the Yen Carry Trade Shape Global Capital Flows

The yen is more than a currency. Its carry trade links monetary policy to global liquidity, risk sentiment, and cross-border capital movement, including India.

Chandrika Soyantar

December 26, 2025 at 9:44 AM IST

iStock.com

India’s Bond Market Is No Longer Listening to the RBI

Rate cuts, benign inflation and strong growth optics should have eased yields. The bond market’s refusal to comply is a warning of deeper structural fault lines.

Madhavi Arora

December 18, 2025 at 6:05 AM IST

Monetary Policy

MPC Signals Maturity as Policy Counters Shocks with Confidence

India’s MPC breaks from old precautionary playbooks, using countercyclical policy and clearer signalling to steady growth, inflation and financial stability.

Ashima Goyal

December 8, 2025 at 3:30 AM IST

RBI Tweets

Monetary Policy

RBI’s Rate Cut Shows Rupee is No Obstacle to Easing

The MPC cut rates despite the rupee’s wobble, signalling what policy has long implied. The currency is simply not a factor in the RBI’s rate calculus.

BasisPoint Groupthink

December 5, 2025 at 2:12 PM IST

Monetary Policy

Why OMOs Matter in This MPC

In a cycle where the headlines flatter to deceive, the liquidity stance, even more than the repo rate action, will do the heavy lifting.

Madhavi Arora

December 1, 2025 at 9:26 AM IST

Should India Consider FX Auctions?

FX auctions helped Latin markets steady volatility. With sharper offshore swings hitting the rupee, India may benefit from adding them to its defence toolkit.

Babuji K

November 28, 2025 at 4:16 AM IST

Monetary Policy

Inflation Targeting Needs Flexibility, Not Unanimity

When monetary consensus turns to groupthink, inflation targeting risks losing its flexibility—and its purpose.

Ashima Goyal

November 13, 2025 at 2:35 AM IST

Rupee Strains and the Liquidity Paradox Testing the RBI’s Resolve

As the rupee faces tariff-induced pressure, the RBI’s interventions are reshaping domestic liquidity, revealing the delicate balance of currency defence and monetary control.

Shubhada Rao, Vivek Kumar, and Yuvika Singhal

November 12, 2025 at 6:18 AM IST

Liquidity: Sterilisation, Caution, Or Doubling Down?

FX book chickens come home to roost in 2025-26, and the RBI’s liquidity injections may need to grow even larger to avoid a fresh policy transmission hiccup.

Vivek Kumar

May 1, 2025 at 3:49 AM IST

The Bureau

Risk Appetite Returns as Trump Signals Possible US Exit From War

WTO’s MC14 Ends in Deadlock, Exposes Deep Fault Lines

Govt to borrow ₹8.2 trillion, 51% of full year aim in April-September, cuts ultra-long bond supply

Pressure Mounts on India as WTO Talks Focus on E-Commerce and Investment Deals

Excise Duty Cut on Petrol, Diesel to Cost the Govt ₹1.55 Trillion: Emkay Global

RBI Seeks HDFC Bank Board Meeting Records: Moneycontrol

Government retains inflation target at 4% for another five years

Trump Speaks With Modi on West Asia, Strait of Hormuz

From Oil Shock to Fed Dilemma: How War Is Reshaping Markets | Market Makers

Learning to Shoot: I Tried to Fly Before I Could Walk