RBI Governor Sanjay Malhotra has offered a broad overview of the central bank’s thinking on the rupee, India’s inflation framework, and the evolving stance on crypto assets, emphasising stability and caution at every step.

Speaking at the Delhi School of Economics, Malhotra underlined that the Reserve Bank does not aim for any specific exchange rate.

“First of all, we do not target any level,” he said, explaining that the rupee’s movement is fundamentally a market-driven outcome.

“Why the rupee is depreciating is because of demand. It’s for the markets to decide… ultimately it’s a commodity, a financial instrument. If the demand for dollars goes up, the rupee depreciates; if the demand for rupee goes up, the dollar comes down. That’s the simple answer,” he noted.

The underlying drivers

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