Don't defend the Rupee,RBI, Financial Express, 24 September 2011

Turmoil in global currency and stock markets has led to
large movements in the rupee and it weakened sharply. Should the RBI
have intervened in a big way to try to prevent rupee depreciation?
Even under normal times, defending a currency is a difficult job. In
present times, a central bank of one country trying to bravely fight
the tsunami of financial flows with its little kitty of reserves
would be a really bad idea. As the Rupee hit Rs 50 to a dollar, the
best thing RBI could do was to keep away from the foreign exchange
market.