MANAGING A MANAGED FLOAT

On August 28, 2013, the Rupee opened at 66.19[1], scaled to a high of 69.22, depreciating by 4.5% during the course of the day. It closed finally at 68.83, in what was to be a black-letter day for the Indian currency. The depreciation in 2013, though drastic, was not wholly unexpected. It was in continuation to the movement that started on May 2, 2013 from 53.66 and had seen rupee depreciating by 28% in a course of three months...