The RBI has done an excellent job of controlling the rupee's decline.

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As investors acquire dollar assets out of fear in an uncertain global environment, currencies throughout the world are sinking against the dollar.

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The Reserve Bank of India took many actions on July 6 to alleviate the rupee's problems after realising this was a taper tantrum 2.0.

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The limits on external commercial borrowings were increased,

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NRI deposits received higher interest rates and CRR/SLR (cash reserve ratio/statutory liquidity ratio) exemptions,

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the restrictions on foreign portfolio investments (FPIs) in debt securities were loosened,

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and international trade settlement was done in Indian rupees.

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The RBI has therefore made sure that the rate of depreciation has been slowed down even if the rupee has declined.

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