Reserve Bank of India (RBI) Governor Sanjay Malhotra on Thursday said the central bank does not aim for any specific exchange rate level for the rupee, and attributed the recent weakness of the domestic currency to strong demand for the US dollar.

“We do not target any level," Malhotra said, speaking at the VKRV Rao Memorial Lecture at the Delhi School of Economics. “Why is the rupee depreciating? (It) is because of the demand… It’s a financial instrument, and there is a demand for dollars, and if the demand for dollars goes up, the rupee depreciates; if the demand for rupee goes up, dollar comes down, then it appreciates."

He said the latest depreciation is “trade-related and due to US tariff issues", adding that he is confident India will have a “good trade deal" with the United States

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