The Indian rupee recovered sharply on Tuesday after key regulators took steps to curb speculative trading in the currency, but some gains were knocked off in minutes and the currency was back below the psychological barrier of 60.
Independent expert Moses Harding said this is not a bullish reversal, but a firefighting activity so that you don't allow the rupee to post a new historic low every day.
Other experts told NDTV that the recovery might be short lived as these measures will do little to correct the fundamental reasons that are driving the rupee lower.
A V Rajwade, consultant in currency and interest rate risk management said the rupee fall is far more a function of what is happening in the domestic economy rather than what happens to the dollar in the global markets.
Mr Rajwade was referring to comments that attributed the slide in the rupee on account of a rally in the U.S. dollar, which climbed to a three-year high on Monday.
"That becomes a very glib kind of explanation, which in a way many policymakers prefer because that avoids introspection as to where have we gone wrong...," he said.
Mr Rajwade blamed government's macro-economic policy, particularly the exchange rate policy followed over the last 4-5 years, behind the current crisis.