RBI Governor Addresses Rupee's Movement, Cites Strong Economic Fundamentals

Reserve Bank of India Governor Sanjay Malhotra stated that the rupee's fluctuation past 90 per dollar is a natural market movement and not a cause for concern. He emphasized that India's economic fundamentals, including high growth, low inflation, and strong foreign exchange reserves, remain robust. Malhotra clarified that the RBI's policy is to curb excessive volatility rather than target a specific exchange rate, asserting that market forces ultimately determine currency prices. He advised against viewing the rupee's level as the sole indicator of economic strength.