RBI to stay hands-off on rupee unless volatility spikes, says RBI Governor Sanjay Malhotra

RBI Governor Sanjay Malhotra said the central bank will maintain a consistent approach to currency management, irrespective of whether the rupee is depreciating or appreciating. He reiterated that the RBI does not normally intervene in routine market movements and only steps in to curb excessive volatility.

“Whether it is an up movement or down—depreciation or appreciation—we generally stay away,” Malhotra said, adding that intervention would be considered only if speculative pressures or abnormal volatility emerge. At present, he said, there are no signs of speculative build-up amid the rupee’s appreciation, and the RBI will allow market forces to determine the currency’s trajectory.