Rupee Breached 90/$: Why RBI Is Letting Markets Decide, Governor Explains

India Today's Raj Chengappa and MG Arun in an exclusive conversation with RBI Governor Sanjay Malhotra. As the rupee crosses the 90 mark against the dollar, the RBI Governor explains why the central bank is not rushing to defend any specific exchange rate level, unlike in the past. Malhotra says the RBI follows a clear policy of not targeting a fixed rupee level, allowing market forces to determine prices while stepping in only to curb excessive volatility or speculation. He explains that some rupee depreciation is natural due to higher inflation compared to advanced economies, with a moderate fall seen as normal. While a weaker rupee can support exporters, the RBI’s focus remains on financial stability and long-term fundamentals, which he says remain strong enough to meet India’s external requirements without hurting importers or exporters.