What is RBI seeing that markets aren't?
· economictimes.indiatimes.com
RBI has imposed new restrictions on forex trading and opened a special window for oil marketing companies. These abrupt measures have confused market participants regarding the rupee's underlying strength. Many are questioning the rationale behind using crisis-era tools so soon after accumulating record forex reserves. The central bank's recent actions suggest it may see pressures that others do not.
In financial markets, messages from policymakers often carry more weight than the policy itself. RBI seems to have forgotten that with its Friday night actions ...