RBI Policy
Governor says will take appropriate steps to limit rupee's fall
This story was originally published at 18:17 IST on 1 October 2025
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--RBI Malhotra: Rupee witnessed some depreciation, keeping close watch
--RBI Malhotra: Will take appropriate steps on rupee as warranted
--RBI Malhotra: Keeping a close watch on rupee movement
--RBI Sankar: Still looking at what will be benchmark for rupee reference rate
--RBI Malhotra: Do not target any level for rupee
--RBI Malhotra: Try to remove undue, abnormal volatility in rupee
--RBI Malhotra: Public sentiment gets priced into the rupee
MUMBAI – The rupee has depreciated recently but the Reserve Bank of India has been keeping a close watch on it, Governor Sanjay Malhotra told a press conference after the Monetary Policy Committee meeting outcome Wednesday. The governor said the central bank will take appropriate steps as warranted to limit the fall of the currency.
The rupee has been on a downward trend in recent times. It hit a record low of 88.8025 a dollar Tuesday. The central bank has been intervening in the currency market for the past two weeks to protect the rupee from breaching the psychologically crucial 89.00-a-dollar level. As of Sept. 26, the apex bank had sold $5 billion-$6 billion in order to protect the rupee from runaway depreciation.
Sometimes, public opinion gets factored in the price of rupee, but the central bank does not push or target any level, the governor said. "We do not target any price band; our effort has been to manage any undue volatility and we will continue to do so," he said.
The central bank has sufficient foreign exchange reserves, so there is no reason for the depreciation of the rupee to harm any public sentiment, he said. On Sept. 26, the country's foreign exchange reserves stood at $702 billion. The central bank aims to remove undue, abnormal volatility in the rupee, Malhotra said.
The apex bank is still looking at what will be the benchmark for the rupee reference rate, Deputy Governor T. Rabi Sankar said. The RBI's Monetary Policy Committee, in a unanimous decision, left the policy repo rate unchanged at 5.50%. The committee also retained its "neutral" policy stance. End
Reported by Rati Chaphekar
Edited by Nishant Maher
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