India's central bank has been shaking things up with its currency interventions lately—and not in a predictable way. The erratic approach is making rupee traders think twice before placing speculative positions. You can't really blame them when the rules of the game keep shifting.

But here's the catch: while this strategy might cool down speculation short-term, it could actually backfire. The rupee might face even steeper declines if market confidence continues eroding. Sometimes trying to control everything too tightly ends up creating the exact problem you're trying to avoid.

Traders are now sitting on the sidelines, waiting to see how this plays out. The volatility isn't just about the rupee anymore—it's about whether intervention itself becomes the bigger risk.