IMF's Julie Kozack says India should let rupee adjust freely
Business
The International Monetary Fund (IMF) thinks India should let the rupee's value move more freely, especially when global energy prices get wild.
IMF Communications Director Julie Kozack says that allowing the exchange rate to adjust on its own is key for keeping things stable.
If a weaker rupee starts pushing up prices too much, then tightening monetary policy might be needed.
RBI spent about $90bn since June
Since June this year, the Reserve Bank of India (RBI) has spent about $90 billion trying to keep the rupee steady.
While that shows commitment, the IMF believes it is better for India to let currency rates adjust naturally, helping absorb shocks and keep the economy balanced.