RBI holds fire, sharpens message amid global flux
Finally, the RBI’s stance on the rupee was unambiguous in intent, if not in explicit targets. There is no appetite for defending specific levels, but neither is there tolerance for disorderly movements that risk becoming self-fulfilling. The message is clear: exchange rate adjustments must remain anchored in fundamentals, not sentiment-driven overshooting. The rupee, as a shock absorber during tariff risks last year, may have served us well, but in a shock that can be inflationary, excessive rupee depreciation only amplifies the pain.
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