No need to panic over rupee sell-off

The rupee has depreciated to its weakest level since the 2013 "taper tantrum" this morning, but we don't think that this will cause panic among policymakers. Since the start of the year, the rupee has outperformed most other major EM currencies. What's more, even if the Reserve Bank now steps in to smooth volatility in FX markets, it would be acting from a position of strength.

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