Reserve Bank of India Governor Sanjay Malhotra said the central bank does not aim for any fixed rupee level, letting market forces determine its value. Speaking at an IMF session in Washington D.C., he stressed that RBI only intervenes to curb volatility, not to fix rates.

BullestIn

• RBI doesn’t target specific rupee value or band.

• Currency guided by market forces, macro fundamentals.

• RBI ensures orderly movement, checks volatility.

• Exchange rate shaped by capital and current account flows.

• India’s macro fundamentals remain strong and resilient.

• Current account deficit near 1% of GDP, 0.6% last year.

• Banking and corporate sectors now well-capitalised, healthy.

• “Twin balance sheet” issue resolved, investment-ready system.

• India’s growth at 6.8%, below long-term ambitions.

• Higher tariffs factored into forecasts, limited impact due to domestic demand.

• Inflation dropped ~2% since adopting flexible inflation targeting (FIT).