India’s Rajan Says FX Intervention to Continue to Reduce Volatility

The Reserve Bank of India will continue to use currency intervention to reduce volatility in the country’s exchange rates, the bank’s governor, Raghuram Rajan, said on Monday.

“There is a school of thought that says: Let the exchange rate move wherever it will,” said Rajan, at the Inaugural Kotak Family Distinguished Lecture held at Columbia Law School in New York.

“That’s something we could do,” Rajan said. “But in emerging markets, with institutions not as strong as industrialized countries, you find there are collateral effects of both the capital moving in and going out.”

Reuters

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam