Not Targeting Specific Level For Rupee: RBI Guv
Says exchange rate policy consistent; Our stated objective is to maintain orderliness and stability, without compromising market efficiency
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Our interventions in the forex market focus on smoothening excessive and disruptive volatility rather than targeting any specific exchange rate level or band. The exchange rate of the Indian rupee is determined by market forces - Sanjay Malhotra, Governor, RBI
Mumbai: Reserve Bank Governor Sanjay Malhotra on Friday said the exchange rate policy has remained consistent over the years and the central bank does not target any ‘specific level or band’ of the rupee, which slipped to an all-time low of 87.59 to a US dollar.
On Thursday, the rupee plunged 16 paise to close at a record low of 87.59 against the American currency. “I would like to mention here that the Reserve Bank’s exchange rate policy has remained consistent over the years. Our stated objective is to maintain orderliness and stability, without compromising market efficiency,” he said, while unveiling the outcome of the Monetary Policy Committee meeting.
Accordingly, he said, “our interventions in the forex market focus on smoothening excessive and disruptive volatility rather than targeting any specific exchange rate level or band. The exchange rate of the Indian rupee is determined by market forces.”
