The market perception of likely  tapering  of US Quantitative Easing has triggered outflows of portfolio   investment, particularly from the debt segment. Consequently, the Rupee  has  depreciated markedly in the last six weeks. Countries with large  current account  deficits, such as India, have been particularly  affected despite their  relatively promising economic fundamentals. The  exchange rate pressure also evidences  that the demand for foreign  currency has increased vis-a-vis that of the Rupee  in part because of  the improving domestic liquidity situation.  Against this backdrop, and the  need to restore stability to the foreign exchange market, the following  measures are announced:              The Marginal Standing Facility (MSF) rate is  recalibrated  with immediate effect to be 300 basis points above the policy repo  rate  under the Liquidity Adjustment Facility (LAF). Consequently, the MSF  rate  will now be 10.25 per cent.                       Accordingly, the B...