RBI Doesn’t Target Any Level For Rupee-Dollar Rate

Mumbai: Reserve Bank Governor Sanjay Malhotra on Wednesday said the central bank does not target any level or band for the rupee-dollar exchange rate, but intervenes in forex market only when there is excessive volatility.

Talking to reporters after the announcement of the April monetary policy, the Governor said the impact the US tariffs on India, vis-a-vis some of the other countries, including China and even the smaller nations is much less. “We are better placed than some of the other countries...we have a comparative advantage,” Malhotra said, but admitted that the tariffs are a “growth dampener”.

The Governor was replying to a question about RBI’s currency management strategy as China is likely to use Chinese yuan depreciation as a tool to counter US tariffs. So far as the currency management is concerned we do not actually intervene in the currency management.