Rupee stopgap: RBI’s new props have boosted its external value but this only spells momentary relief
True, the rupee might have been trading below its ‘real effective exchange rate’ (REER), but markets go by supply and demand as well as sentiment, not artificial constructs like the REER, which tracks a trade-weighted basket of currencies. And the harsh fact is that today’s forces of demand and supply do not favour our currency.
