India's Defense of Rupee Takes Large Bite From Record Reserves.

(Bloomberg) -- India's intervention to protect the rupee is running down currency reserves at a rate that's poised to eclipse the drawdown during turmoil a decade ago. Read: Depleting Reserves Spell Risks for Emerging Asian Currencies "Falling FX reserves, persistently-high commodity prices, limited exchange rate pass-through to inflation and elevated INR valuations will likely tilt the balance towards a less interventionist FX policy in coming months", Madhavi Arora, lead economist at Emkay Global Financial Services Ltd., said in a note. [Extracted from the article]