Frankly I did not know [1] A large and rapidly growing -share of rupee trading happens off shore [2] Major Offshore Centres are Singapore and London [3] Both are beyond RBI’s regulatory reach [4] Singapore alone accounts for $57.6 billion in daily rupee trading whereas London handles about $59.9 billion compared to onshore trading volumes of $70 billion or so [5] In short off-shore trading volumes are substantially higher than on-shore volumes [6] All this means RBI cannot prevent bets agaisnt the rupee by acting only on domestic participants — [7] Other information in the article worth a read– Courtesy BL