{
  "id": 17505456,
  "title": "Rupee slide: Panic is no policy",
  "url": "https://urgent.news/2026/11/01/rupee-slide-panic-is-no-policy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-01T01:00:09.000Z",
  "source": {
    "name": "The Indian Express",
    "slug": "the-indian-express",
    "url": "https://indianexpress.com/article/opinion/columns/rupee-slide-panic-is-no-policy-10945273/"
  },
  "original_language": "en",
  "account": "Delhi is experiencing panic over the depreciating rupee, a situation that is being amplified and transmitted to Mumbai, the financial hub of India. The Reserve Bank of India (RBI) proposed measures to control dollar outflows, but these proposals only seem to alarm people more. The RBI suggested prohibiting individual residents from sending money abroad for real estate or share purchases, overseas direct investments, opening bank accounts, and giving loans to NRI relatives under the Liberalised Remittance Scheme (LRS). They also proposed reducing the LRS limit for all current account transactions to $50,000 a year from $2,50,000 a year.\n\nThe rupee has depreciated by almost 7 per cent over the past 12 months, reaching 94.95 against the US dollar. This is problematic as it makes imports more expensive, affecting things like crude oil, gold, and foreign travel. To combat this, the Prime Minister asked people to reduce fuel consumption, avoid gold purchases, and postpone overseas travel. The RBI sold dollars to stabilize the currency and raised interest rates, making rupee assets more attractive. However, these efforts have not been successful as the market continues to expect further depreciation.\n\nIndia is facing a challenging situation due to high crude oil prices, two ongoing wars, and US President Donald Trump's unpredictable behavior along with China's strategic dominance in manufacturing and technology. The US government's borrowing is also making the dollar more attractive relative to other currencies. The yield difference between US bonds and Indian bonds is at a two-decade low, making foreign investors prefer US bonds over Indian ones. India lacks an artificial intelligence industry, further contributing to its difficulties.\n\nIndia has a robust macroeconomic foundation with robust growth, controlled inflation, and prudent fiscal management. However, the private sector investment is lacking, wages are stagnant, and job creation is insufficient. The RBI has sold $75-80 billion in forex reserves during June-October to defend the rupee, and its net forward sales stood at $239 billion in September. Foreign exchange reserves are comfortable at $720 billion, providing a cushion. However, Delhi's approach of panic and defensive measures may further intensify the situation rather than stabilize the rupee. The market is looking for a coherent strategy from the RBI that acknowledges the global challenges India faces and communicates a near-term plan to address the problem.",
  "summary": null,
  "key_points": [
    "Rupee depreciated 7% over 12 months to 94.95 against US dollar",
    "RBI proposed restrictions on dollar outflows, LRS limit reduction",
    "Market expects further depreciation despite RBI measures"
  ],
  "editors_take": "Aggressive regulatory restrictions on capital outflows risk backfiring by fueling the very market panic the central bank intends to suppress through its defensive and reactive monetary measures.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}