Private Banking and Depreciation of the Rupee

of the Rupee Kannan Srinivasan The recent volatility in the foreign exchange market has been discussed almost entirely in terms of the Reserve Bank of India 's behaviour, whether it intervened 'in time' or in the right way, and so on. But considering the scale on which portfolio funds and 'other capital' have entered India in the last two years, the recent developments need clearly to be looked at in the context of international capital flows.