RBI should ease its tight grip on rupee, says Viral Acharya

FORMER RESERVE BANK of India deputy governor Viral Acharya said the central bank should ease its tight grip on the rupee, a view that comes amid uncertainties over whether the new governor will maintain his predecessor's policy of limiting currency swings.

- BHASKAR DUTTA & SUBHADIP SIRCAR

"You don't need to kill volatility to manage excessive volatility," Acharya said in an interview. The RBI must allow "some baseline volatility because it maintains a certain level of private hedging, which is important because the central bank can't do full absorption of risk".