India's Finance Minister Says RBI Will Continue Efforts to Curb Rupee Volatility

Finance Minister Nirmala Sitharaman stated at the Bloomberg New Economy Forum 2026 that the rupee has depreciated considerably over the past year and a half. She clarified that the RBI's interventions are aimed at reducing volatility rather than fixing the rupee's value. The RBI recently introduced measures including a special window for oil marketing companies, tighter forex derivatives rules, and a 20 percent reserve requirement on large dollar purchases. The rupee rose approximately one percent on Monday following the announcements and appreciated to Rs 94.96 on Tuesday. Sitharaman attributed the currency's volatility primarily to external factors and affirmed that India's macroeconomic fundamentals and fiscal discipline remain intact.

In remarks delivered to lawmakers on Tuesday, Sitharaman noted that the rupee had depreciated against a range of currencies over the prior eighteen months, adding that the Reserve Bank of India intended to continue managing volatility in the exchange rate. Opening trade on Tuesday brought the rupee to Rs 94.96 per dollar, while Sitharaman indicated to reporters that the Reserve Bank of India would likely act to contain volatility in the exchange rate, pointing to the country's foreign exchange reserves as a basis for confidence in the broader economic footing. The minister framed the currency's volatility as a product of external forces, pointing to what he described as solid domestic fundamentals while asserting that fiscal discipline gave investors no grounds for concern — though no independent data or opposing perspectives were offered to support either claim.

India's Finance Minister Says RBI Will Continue Efforts to Curb Rupee Volatility

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India's Finance Minister Says RBI Will Continue Efforts to Curb Rupee Volatility

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