RBI Governor Sanjay Malhotra addressed concerns over the rupee’s recent slide, emphasising that the central bank does not target any specific exchange rate level or band. Instead, he reiterated that the RBI’s long-standing policy is to allow market forces to drive currency movements, intervening only to manage volatility—not to defend a particular value.

Malhotra pointed to this year’s trend as an example of how the rupee self-corrects over time. The currency had weakened to nearly 88 per dollar in February, only to rebound below 84 within three months. This, he said, demonstrates that “the market itself brings the exchange rate to a level it finds appropriate," reinforcing the RBI’s confidence in the external sector despite recent depreciation pressures.

The rupee weakened further on Fr

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