RBI does not target any band for rupee, allows it to find its own level: Guv Malhotra
Mumbai (PTI): Reserve Bank Governor Sanjay Malhotra on Friday said the central bank does not target any band for the rupee in the forex market, and allows the domestic currency to find its own correct level.
The governor's statement came at a time when the rupee breached the 90-mark against the US dollar, and is hovering near that level.
"We don't target any price levels or any bands. We allow the markets to determine the prices. We believe that markets, especially in the long run, are very efficient. It's a very deep market," he said while replying to a question on rupee depreciation at a post-monetary policy press meet.
Malhotra said fluctuations in the market keep taking place, and the effort of the RBI is always to reduce any abnormal or excessive volatility.
"And that is what we will continue to endeavour," he added.
In its bi-monthly monetary policy, the RBI announced three-year USD/INR Buy Sell swaps of USD 5 billion this month.
When asked if the USD-INR swap is aimed at checking rupee depreciation, Malhotra said, "It is a liquidity measure. It is not to support the rupee".
Stressing that RBI does not target any level of rupee against the US dollar, he said the central bank allows "the rupee find its correct position, correct level".
The governor further said the country has sufficient foreign exchange reserves and the current account is manageable, and given the strong fundamentals of the economy, the country should witness good capital flows going forward.
Foreign portfolio investment (FPI) to India recorded a net outflow of USD 0.7 billion in 2025-26, so far (April-December 03), due to unabated withdrawal from the equity segment.
Flows under external commercial borrowings and non-resident deposit accounts moderated compared to the last year.
As of November 28, 2025, India's foreign exchange reserves stood at USD 686.2 billion, providing a robust import cover of more than 11 months.
The governor further said that, having reduced the policy rate (repo) by 25 basis points, the focus will now be on transmission of the rate cut to the real economy.
According to the RBI's November bulletin, the depreciation of the rupee in October was due to a stronger dollar, following the US Fed's policy announcement to lower the Federal funds rate.
Nevertheless, strong fundamentals, such as stable inflation, a resilient growth outlook for the Indian economy, a narrower current account deficit, steady services exports, robust private remittances, and robust foreign exchange reserves, have contributed to the rupee being the least volatile among emerging market and developing economies.
The rupee has performed better than the Euro, and its depreciation has been in line with that of other currencies, such as the Japanese Yen and the Korean Won (for April to November 2025-26).
The central bank has announced various measures over the last 3 years to diversify and expand the sources of foreign exchange funding, aiming to mitigate exchange rate volatility and dampen global spillovers.
The RBI bi-monthly policy in October had announced some measures to enhance the use of the rupee in international trade.
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India moving towards becoming global economic powerhouse: Kovind
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Amritsar (PTI): Former president Ram Nath Kovind on Friday said that with digital transformation, economic reforms and a strong focus on the ease of doing business, India is moving towards becoming a global economic powerhouse.
He was speaking after inaugurating the 19th edition of the Punjab International Trade Expo (PITEX) in Amritsar.
The former president said that this 19th edition of PITEX is being organised at a time when India is recognised as one of the fastest-growing large economies in the world.
Speaking at the inaugural ceremony of the event organised by the PHD Chamber of Commerce and Industry (PHDCCI) the former president, while referring to Punjab, said the state is a living example of courage, sacrifice and enterprise.
"The spiritual light of Sri Harmandir Sahib (Golden Temple) inspires peace and humanity across the world. The heritage of Punjab is deep and inspiring," Kovind said, according to a statement issued by the PITEX.
The former president congratulated the PHDCCI for hosting the 19th edition of PITEX and suggested that the chamber should expand PITEX outside Punjab.
He proposed that a similar event should also be held in New Delhi.
