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RBI clarifies rupee not used to offset trade tariffs
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RBI reaffirmed its market-based FX policy, saying rupee levels won’t be used to mitigate tariff effects or boost export competitiveness.
RBI Deputy Governor Poonam Gupta reiterated that India’s exchange rate will remain market-determined and will not be manipulated to counteract tariff-related pressures on exports. Her remarks follow the rupee’s mild depreciation and rising trade deficit concerns. Gupta said currency movements reflect macro fundamentals, not administrative intent, aligning with RBI’s inflation and external-stability objectives. Market participants viewed the statement as a signal of limited central bank intervention and continued FX discipline.