RBI Governor: Forex Interventions Will Focus On Smoothening Disruptive Volatility

The Reserve Bank of India has made it clear that it does not see a specific exchange rate level or band for the Rupee. In his first monetary policy statement, RBI Governor Sanjay Malhotra emphasised that the Reserve Bank’s exchange rate policy has remained consistent over the years and its objective is to maintain orderliness and stability, without compromising market efficiency. He added that RBI interventions in the forex market will focus on smoothening excessive and disruptive volatility and that the exchange rate of the Indian Rupee is determined by market forces.