Market turmoil tests RBI’s appetite for FX intervention

Although the rupee fell to a record low against the US dollar this week amid a broad-based sell-off in global financial markets, it held up better than most other EM currencies. That’s probably down to FX intervention from the RBI, and we expect the Reserve Bank to continue intervening to support the rupee if it comes under renewed downward pressure. World with Higher Rates - Drop-In (21st June, 10:00 ET/15:00 BST): Does monetary policy tightening automatically mean recession? Are EMs vulnerable? How will financial market returns be affected? Join our special 20-minute briefing to find out what higher rates mean for macro and markets. Register now

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