officially, the indian rupee has a market-set exchange rate. however, the rbi trades actively in the usd/inr currency market to impact effective exchange rates. thus, the currency regime in place for the indian rupee with respect to the us dollar is a "de facto" controlled exchange rate. this is sometimes called a "managed" float. other rates such as the eur/inr and inr/jpy have volatilities that are typical of floating exchange rates. it should be noted, however, that unlike china, successive administrations (through rbi, the central bank) have not followed a policy of "pegging" the inr to a specific foreign currency at a particular exchange rate. rbi intervention in currency markets is solely to deliver low "volatility" in the exchange rates, and not to take a "view" on the rate or direction of the indian rupee in relation to other currencies.