IMF says India should let rupee float amid oil shock
The International Monetary Fund just suggested that India should let the rupee move more freely instead of trying to control its value during this ongoing oil shock.
Krishna Srinivasan, Director of the Asia and Pacific Department at the International Monetary Fund, said it's better for the exchange rate to handle these shocks, rather than relying on heavily on Reserve Bank of India interventions.
RBI dollar sales offer temporary relief
The Reserve Bank of India has been selling dollars and offering special deals to oil companies to help steady the rupee, which did bounce back a bit.
But according to Srinivasan, these fixes have not been particularly beneficial beyond the near term due to the oil shock.
On a positive note, the International Monetary Fund also gave a nod to India's recent moves, like cutting taxes on foreign investments in government debt and raising big funds from overseas Indians, to help bring in more foreign money.