The Reserve Bank of India does not target any specific level of Indian Rupee (INR), Governor Sanjay Malhotra said here on Thursday. He also assured that the central bank has “very good” buffers of foreign exchange reserves and there is no reason for concern.

“We do not target any level. Why is the rupee depreciating? (It) is because of the demand. It is a financial instrument, and there is a demand for dollars, and if the demand for dollars goes up, the rupee depreciates; if the demand for rupee goes up, dollar comes down, then it appreciates,” Malhotra said while responding to a query after delivering the VKRV Rao Memorial Lecture at the Delhi School of Economics.

He also exuded confidence that India will have a “good trade deal” with the US, and that would relieve the pressure on the c

See Full Page