The Bank of India issued secret instructions to traders who specialize in rupee transactions in a soundproofed room. Sometimes the order focuses on size: throwing out $100 million per minute; other times, the order focuses on the market price: sell until the target price is reached; on other trading days, the order is simple: just wait and see. The Bank of India's intervention strategy is difficult to predict. This is one of the central bank's actions to strengthen exchange rate management at a time when the rupee has repeatedly reached new lows. Some of the bankers, traders, and former central bank officials interviewed anonymously described how the Bank of India's strictly confidential intervention works. They say exchange rate volatility is likely to continue to be high, and transactions will fluctuate suddenly as the central bank enters and leaves the market.

The Bank of India issued secret instructions to traders who specialize in rupee transactions in a soundproofed room. Sometimes the order focuses on size: throwing out $100 million per minute; other times, the order focuses on the market price: sell until the target price is reached; on other trading days, the order is simple: just wait and see. The Bank of India's intervention strategy is difficult to predict. This is one of the central bank's actions to strengthen exchange rate management at a time when the rupee has repeatedly reached new lows. Some of the bankers, traders, and former central bank officials interviewed anonymously described how the Bank of India's strictly confidential intervention works. They say exchange rate volatility is likely to continue to be high, and transactions will fluctuate suddenly as the central bank enters and leaves the market.