Even as the rupee depreciated by over 5 per cent to beyond 90 against the dollar, Reserve Bank Governor Sanjay Malhotra on Friday said the central bank was well placed on the currency front, stating that “this volatility does happen, can happen” and that the market is very “efficient” and “deep.”

After cutting Repo rates by 25 basis points to 5.25 per cent on Friday, Malhotra said, “we allow the markets to determine, I mean, we don’t target you any price levels or any bands.”

“We allow the markets to determine the prices. We believe that the markets, in the long run especially, are very efficient. It’s a very deep market. We saw this earlier in February. The rupee to dollar had climbed to almost 88 and within a period of three months, it came back to below 84 so these fluctuations, this

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