RBI Focuses on Currency Stability, Not Fixed Rate Against Dollar: Governor Sanjay Malhotra
RBI Governor Sanjay Malhotra emphasizes stability in the currency market rather than defending a specific rupee level against the dollar.
New Delhi, October 23 (Daily Kiran) : The Reserve Bank of India’s (RBI) Governor, Sanjay Malhotra, stated on Friday that the central bank is not focused on maintaining the rupee at a specific level against the dollar. Instead, the primary goal is to ensure stability in the foreign exchange market. Speaking at the NDTV World Summit 2026 in the national capital, Malhotra explained that the RBI intervenes in the currency market only when necessary, particularly to address speculative activities or significant fluctuations.
“We do not target a specific price or level for the rupee, but we strive to keep conditions in the foreign exchange markets orderly,” he said. Malhotra’s remarks come amid ongoing debates regarding the rupee’s performance against the dollar. Recently, the Indian currency approached a record low of around 97 rupees per dollar before showing signs of recovery.
The rupee strengthened for eight consecutive sessions, reaching its highest level in four months, but saw a slight decline on Thursday, settling at 94.83 rupees against the U.S. dollar. Over the past few years, the depreciation of the rupee has sparked political discourse, with opposition parties citing the decline as a sign of economic pressure.
A decade ago, in October 2016, the rupee was trading at approximately 66.83 rupees per dollar, indicating a nearly 42 percent increase in the dollar’s value during this period. However, Malhotra asserted that India’s broader economic fundamentals remain robust. He highlighted the country’s recent GDP growth rate of 7.8 percent, noting that key economic indicators reflect the internal strength of the economy.
Malhotra also addressed concerns regarding inflation, acknowledging current price pressures but asserting they remain within the central bank’s tolerance band. He pointed out that India’s average inflation rate over the past decade has been 4.7 percent, significantly lower than the 7.4 percent average recorded in the preceding four years.
