Hi Kaushik, Thanks for your comments. Currencies are set by a complex quasi-market process. Because market participants are human, there is always a psychological and emotional component embedded in prices. However, because central banks are also heavily involved in buying and selling their own currencies and setting monetary policy, both policy and political considerations are embedded in the INR values as well. To my knowledge, nobody has built a framework to estimate how much psychology/emotion is embedded in prices by specific issues. That said, my view is that most of the movement of the INR is based on policy and macroeconomic differentials that have evolved recently and therefore the depreciation of the INR is a rational response and very little is psychological.