A depreciating rupee is a double-whammy for India. Repercussions of the currency weakness are felt at both macro and micro levels. Around mid-July, the rupee breached 80/$ during the day, for the first time ever.
As earlier reported by Mint, it’s not the depreciation but the pace of rupee volatility that the RBI is watchful of. It has introduced a slew of measures to stabilize the rupee, whose sliding adversely affects foreign reserves and import bills.