Build forex reserves to protect rupee: Indranil Sen Gupta
The rupee continues to remain volatile and susceptible to downside risks. Indranil Sen Gupta, chief economist, DSP Merrill Lynch, says that the RBI should follow a strategy of building forex reserves as a way to build confidence in the currency. While building reserves may prevent appreciation of the rupee in the near term, in the medium term, a higher import cover will help bring back confidence in the currency, he explains.
