RBI seen prudent in spending forex reserves

Limited intervention: A man using a mobile phone holding a one hundred rupee banknote in Hyderabad. The currency is down nearly 4% this year. It had gained 0.2% to 77.32 to a dollar on Tuesday. — Bloomberg

MUMBAI: The Reserve Bank of India (RBI) is once again seeking to defend its currency when the Federal Reserve (Fed) is tightening.

This time though, analysts expect it to mount a more limited defence, aimed at fending off the worst of speculative attacks rather than holding down a line in the sand when capital flows are shifting globally with the Fed set to hike throughout the year.