Raghuram Rajan urges against using forex reserves to defend rupee
Business
Former Reserve Bank of India (RBI) Governor Raghuram Rajan thinks India shouldn't burn through its foreign exchange reserves just to keep the rupee strong.
Chatting at the Global Markets Forum, he pointed out that a slightly weaker rupee can actually help Indian exports, and warned against trying to force the currency to a specific value.
Rupee down 6% this year
The rupee has dropped about 6% this year, hitting a record low in May thanks to pricey oil and global money shifts.
The RBI has been working hard to keep things steady, but Rajan cautions that if these trends continue, India's current account deficit could get worse.
He also suggests looking at the bigger picture, especially with global tensions rising, and saving reserves for real emergencies.