Chinese-Dragon
RETIRED TTA
- Joined
- Jul 9, 2010
- Messages
- 33,932
- Reaction score
- 52
- Country
- Location
The Indian government has intervened several times to stop the currency from falling further, but none of the interventions have had a lasting effect.
The problem with these interventions, is that the markets will often see them as a desperate act by a government with a limited ability to fix the problem.
Which further erodes the confidence in the Rupee.
Intervening in the market to control currency movements is a tricky business. Both Switzerland and Japan tried this a few years back, both failed. It's not something that can be done with half-measures, you really need to use full-measures.
The problem with these interventions, is that the markets will often see them as a desperate act by a government with a limited ability to fix the problem.
Which further erodes the confidence in the Rupee.
Intervening in the market to control currency movements is a tricky business. Both Switzerland and Japan tried this a few years back, both failed. It's not something that can be done with half-measures, you really need to use full-measures.