India's boldest exchange rate policy measure in recent years has only brought a temporary boost to the rupee.

India has rolled out its most aggressive measures in over a decade to curb speculation in the foreign exchange market, but the effects have been short-lived. The initial rise of the rupee quickly faded, reflecting the huge challenge faced by the Reserve Bank of India in supporting the worst-performing currency in Asia. After opening higher on Monday, the Indian rupee against the US dollar surged by 1.4%, but quickly fell back to just a 0.3% increase. The RBI announced new regulations last Friday, setting a limit of $100 million on banks' open positions in the domestic foreign exchange market at the end of each trading day, in order to force them to reduce their positions.