RBI Governor Malhotra: Market Forces Shape Rupee Value

Reserve Bank Governor Sanjay Malhotra emphasized market dynamics dictate the rupee's value against the US dollar. The RBI focuses on medium to long-term stability rather than daily fluctuations. The recent rate cut aligns with growth projections, while liquidity management remains robust. Discussion on global issues and crypto regulation is ongoing.

Reserve Bank Governor Sanjay Malhotra stated that the value of the rupee against the US dollar is determined by market forces, dismissing concerns over daily fluctuations.

Following a meeting with Finance Minister Nirmala Sitharaman, Malhotra explained that the central bank’s focus remains on stabilizing the rupee in the medium to long term.

Discussing the rupee's depreciation, Malhotra described it as influenced by global uncertainties, notably those arising from tariff discussions involving the US. The RBI’s recent rate cut aligns with maintaining growth and inflation projections. The RBI assures that adequate liquidity will be ensured, utilizing various instruments. Additionally, discussions on crypto asset regulation are in progress.