Taper tantrum playbook key for RBI as rupee continues slide to record lows

The rupee has declined almost 7% this year, bringing back memories of the selloff nearly a decade ago, when fiscal and current account deficits also widened

With rupee sliding to fresh record lows almost every week, analysts say India’s policy makers can take a leaf from their 2013 taper tantrum playbook to curb further losses. 
 

The currency has declined almost 7% this year, bringing back memories of the selloff nearly a decade ago, when fiscal and current account deficits also widened, inflation accelerated and US Treasury yields rose. 

There are indications that authorities are heeding the lessons, having already raised import duties on gold and announced measures to attract more foreign inflows. The Reserve Bank of India also said it plans to settle international trade in