The Indian rupee has slumped to a record low and looks poised for further falls.
That is despite a series of measures unveiled last week by the central bank, which has been selling dollars to support the currency.
It has also tried to restrict how much Indian residents and companies can send offshore, which only raised fears of outright capital controls that would further undermine the confidence of foreign investors
The rupee is down nearly 11 percent this year. Its tumble is linked to the US Federal Reserve signalling that it may begin tapering its monetary stimulus this year.
Some foreign exchange analysts have said the sell off is overdone.
“Foreign exchange reserves are more than adequate. We also think inflows would gradually start to come in while the RBI will also continue to intervene in the market,” said Samir Lodha, managing director at QuantArt Market Solutions, a consultancy and brokerage in Mumbai.