Sanjay Malhotra, Governor of the Reserve Bank of India (RBI)
“We are not targeting at any level. Why has the rupee depreciated? It is because of demand. It is a financial instrument and there is demand for dollars, and if the demand for dollars rises, the rupee depreciates; if the demand for rupee rises, the dollar falls, it appreciates,” Malhotra said while responding to a question after delivering the VKRV Rao Memorial Lecture at the Delhi School of Economics.
He also expressed confidence that India will have a “good trade deal” with the US and this would ease pressure on the country’s current account. These comments have been made at a time when the INR has fallen by 3.6 percent. While trade tensions between India and the US have impacted the INR, foreign portfolio investors have withdrawn over $16 billion from India, making the situation challenging.
The rupee becomes less valuable
The rupee fell 23 paise to 88.71 (provisional) against the US dollar on Thursday, reflecting broad-based strength in the US currency and diminishing chances of a rate cut by the US Federal Reserve. Forex traders said the dollar has rallied to rise above the 100 level after US Federal Reserve minutes showed most officials opposed a rate cut in December, following October’s rate cut.
Replying to another question on the banking sector, Malhotra said that given the way Indian banks are performing, very soon some of them will be among the top 100 global lenders. Earlier in his speech, he said the RBI’s main priority is to ensure financial stability in the system and the central bank seeks to simplify regulations wherever possible while maintaining necessary safeguards and guardrails.
Published on November 20, 2025
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