On Wednesday, the Indian rupee registered its best gain against the US dollar in seven months following an intervention by the Reserve Bank of India. As a result of the RBI selling dollars, the rupee’s exchange rate versus the dollar rose by over 1 per cent during the day. By the close of day, the rupee had gained 0.7 per cent over the dollar and the exchange rate had shifted from 91.05 to a dollar to 90.09 to a dollar. The RBI’s intervention in the form of a massive sale of dollars, increasing the relative supply of dollars vis-à-vis the rupee and boosting the relative price of the rupee, came in the wake of a sharp........

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