One battle after another for INR, pump prices hiked

Policymakers’ concerns about the depreciation of the rupee have again come to the fore this week, but the hike in gold import tariffs has done little to prevent the currency from sliding further. Larger FX intervention and, possibly, interest rate hikes may now be considered as viable options. Indeed, the prospect of rate hikes has risen further following the announcement of petrol and diesel price rises today for the first time in four years.