The decision to regulate diesel prices in India couldn’t have come at a better time for the economy. The Reserve Bank of India has been impatient with the government for not carrying out necessary fiscal corrections and the ratings agencies have put India on watch for a possible downgrade. The twin deficits have kept the markets nervous and the rupee under pressure. Small wonder then that on Friday the rupee shot up by 69 paise to close at a two-month high versus the dollar.  Article