India’s central bank does not target any price level on the rupee, governor Sanjay Malhotra reiterated at an International Monetary Fund and World Bank event on Wednesday.
The rupee has been in a firm downward trend, weighed by U.S. President Donald Trump’s trade policies, including tariffs against India, and geopolitical tensions.
The Reserve Bank of India’s (RBI) frequent interventions have kept the rupee from breaching its all-time low of 88.80, last touched on September 30.
“We believe in the markets to decide what the level should be… Our effort really is to ensure that there is an orderly movement of the rupee both sides, and any undue or any abnormal volatility is curbed,” he said.
The RBI intervened heavily in the currency market on Wednesday to shore up the rupee, traders said, mirroring the central bank’s moves to defend the local currency in February.
Malhotra also said the RBI wants to promote its central bank digital currency (CBDC) over stablecoins or cryptocurrencies.
Earlier this month, the RBI launched a retail sandbox for CBDC, allowing fintech firms to build and test solutions as part of the ongoing pilot.
Prime Minister Narendra Modi’s government has for several years debated drafting a law to regulate or even ban cryptocurrencies but has not made a final decision.
