India’s central bank (RBI) is not targeting any price band for the Indian rupee and focusing more on curbing excess volatility, Reserve Bank of India (RBI) Governor Sanjay Malhotra told reporters on Saturday.
His comments come after the central bank cut its key interest rate for the first time in nearly five years on Friday.
The Indian rupee rose in early trading on Friday, tracking the gains in most Asian currencies, while dollar-rupee forward premiums dipped.
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The rupee was at 87.46 (Dh23.83) against the US dollar as of 9.20am IST, stronger by 0.1 per cent on the day.
Malhotra also said RBI will be agile in responding to banks’ liquidity needs of the banking system.
“We will be very, very watchful, alert and very nimble and agile in whatever are the requirements of the banking system to provide liquidity, both transient, overnight, as well as more durable liquidity,” he said.
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