Right facts, wrong conclusion, Financial Express, 23 February 2012

The turnaround of the rupee dollar rate in recently
weeks is seen as a consequence of successful intevention by the RBI
in the foreign exchange market. The rupee stopped depreciating, and
actually appreciated, after a set of small nudging steps by the
RBI. This perception has led to increased support for an
interventionist policy. But evidence suggests that the behaviour of
the currencies of large emerging markets was similar to that of the
rupee. The RBI was leaning with the wind, rather than against
it.