RBI has no fixed dollar: rupee exchange rate: Shaktikanta Das

• The forex reserve adequacy aspect is always kept in mind while: RBI intervenes in the forex market, says RBI governor.
• The Indian rupee depreciated 7.4% against the US dollar, but outperformed other Asian counterparts.
• Das said a stable exchange rate is a beacon of financial and general macroeconomic stability and market confidence.

The Reserve Bank of India (RBI) has no fixed dollar: The rupee exchange rate and its market interventions aim to curb excessive volatility, governor said Shaktikanta Das.

He also said that the forex reserve adequacy aspect is always kept in mind while RBI intervenes in the forex market. The umbrella remains strong.

Announcement of the Monetary Policy Statement at: Friday Das said the US dollar has appreciated 14.5% against a basket of major currencies during the current fiscal year (to September 28).

This has caused unrest in the currency markets worldwide.

The movement of the Indian rupee was orderly compared to most other countries’ currencies, Das said.

He said the Indian rupee has depreciated 7.4% against the US dollar over the same period — far outperforming several reserve currencies and many of its emerging market economies and Asian counterparts.

Das said a stable exchange rate is a beacon of financial and general macroeconomic stability and market confidence.

Citing the differing views on the rupee exchange rate and the adequacy of our forex reserves, Das said the rupee is a free-floating currency and the exchange rate is determined by the market.

“Second, the RBI does not have a fixed exchange rate in mind. It intervenes in the market to curb excessive volatility and anchor expectations. The overarching focus is on maintaining macroeconomic stability and market confidence,” he said.

According to him, RBI’s actions have helped build investor confidence, as evidenced by the return of capital inflows since July.

“In the medium term, the primacy of price stability is embedded in our flexible inflation target (FIT) framework provides the anchor for exchange rate stability,” he noted.

The interventions of the RBI in the forex market are based on a continuous assessment of the prevailing and evolving situation.

SEE ALSO: Here’s How Much Your EMI Will Rise After the Recent Rise in Repo Rate

Presidential Commission recommends stamping H-1B visas within the US

RBI raises repo rate by 50bp, pushing it to three-year high of 5.9% – Das says inflation is ‘alarmingly high’ in all jurisdictions