Why is the Indian rupee depreciating against the US dollar according to the RBI?

RBI Governor Sanjay Malhotra stated the rupee's depreciation is due to increased demand for the US dollar in the market.

What is the Reserve Bank of India's stance on targeting the rupee's exchange rate?

The Reserve Bank of India does not target any specific level for the rupee.

What is the outlook for Indian banks, according to the RBI Governor?

The RBI Governor predicts that Indian banks are performing strongly and expects some to become top 100 global lenders soon.

Home / Business and Economy / RBI Governor: Rupee Dip Due to Dollar Demand

RBI Governor: Rupee Dip Due to Dollar Demand

20 Nov

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Summary

RBI does not target any specific rupee level.
Rupee depreciation is driven by increased dollar demand.
Indian banks are expected to rank among global top lenders soon.

RBI Governor: Rupee Dip Due to Dollar Demand

Reserve Bank of India Governor Sanjay Malhotra has clarified that the central bank does not target any specific exchange rate for the rupee. He explained that the recent depreciation against the US dollar is primarily a result of increased demand for the greenback in the financial market.

Malhotra emphasized that India's foreign exchange reserves are in a "very good" state, alleviating concerns about the external sector. He also highlighted the RBI's commitment to maintaining financial stability while simplifying regulations where possible without compromising safeguards.

Looking ahead, the governor expressed optimism about the Indian banking sector, predicting that several domestic banks will soon be recognized among the top 100 global lenders, reflecting their strong performance.

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