Column The task at RBI

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: correct significantly lower and monetary policy tightness is expected to persist, providing some scope for the Indian rupee to regain some lost ground.

However, there would be significant limitations as regards the extent to which the rupee can appreciate. In the longer term, the rupee should stay a depreciating currency as the dice remains loaded for a strong dollar over an extended horizon. As the dollar is resurrected as the number one currency of the world the flow of funds would remain in favor of dollar assets and relatively lesser in favor of the emerging market assets.