India should free up exchange rate moves: U.S.

India has been exemplary in publishing its foreign exchange market intervention, the U.S. Treasury Department said, adding that New Delhi should allow the exchange rate to move flexibly to reflect economic fundamentals.
“The (Indian) authorities should allow the exchange rate to move flexibly to reflect economic fundamentals, limit foreign exchange intervention to circumstances of disorderly market conditions, and refrain from further significant reserve accumulation,” it said. “As the economic recovery progresses, the authorities should continue to pursue structural reforms that can help lift productivity and living standards, while supporting an inclusive and green recovery,” it said.