RBI Governor Malhotra Clarifies Stance on Rupee-Dollar Exchange

Reserve Bank Governor Sanjay Malhotra stated that the RBI does not set a specific target for the rupee-dollar exchange rate, intervening only during excessive volatility. Amid US tariffs and global economic uncertainties, Malhotra emphasized India's advantageous position compared to other affected nations including China.

Reserve Bank Governor Sanjay Malhotra clarified on Wednesday that the central bank does not aim for a specific level or range in the rupee-dollar exchange rate. Instead, the RBI intervenes in the forex market solely when excessive volatility is observed.

After announcing April's monetary policy, Malhotra highlighted that while US tariffs have impacted nations like China, the effect on India is comparatively less severe. He acknowledged, however, that tariffs act as a 'growth dampener' for the economy.

Malhotra reiterated the Reserve Bank's stance on non-intervention unless necessary, despite currency management concerns with China potentially using yuan depreciation to tackle US tariffs. He expressed confidence in India's robust market dynamics but assured intervention if volatility becomes disruptive.

(With inputs from agencies.)