India builds monetary walls in an increasingly constrained world

Mihai Prelipcean

The Reserve Bank of India (RBI) intervened again in the currency market to support the rupee, in a context marked by persistent capital outflows from portfolios, weak regional signals, and uncertainties stemming from trade relations with the United States, according to a Reuters report on January 9, 2026. Despite these interventions, the Indian currency remained fragile, and rallies induced by dollar sales quickly faded, indicating that external pressures exceed the market's ability to self-

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