RBI’s rupee challenge should nudge it to tighten monetary policy—even the US Fed may have to
· livemint.com
Last Friday's package announced by RBI may buy the rupee a breather, but it won't fix the core weakness in India's external accounts. On the other hand, attracting foreign inflows would be easier if Indian debt assets begin to yield more.
So instead of sticks, authorities decided to go with a carrots-only approach, telling state-run firms and local banks to raise dollars overseas, bring them home...