RBI is anchoring expectations on rupee weakness, says Shaktikanta Das

He expects inflation to fall within tolerance band by January-March

The Reserve Bank of India’s (RBI’s) interventions in the foreign exchange market are not just aimed at preventing excessive volatility in the rupee but also to anchor expectations around the depreciation of the domestic currency, Governor Shaktikanta Das said on Monday.

The RBI’s stated stance, thus far, had been that it intervenes in the foreign exchange market to prevent excessive volatility in the exchange rate.

“As I mentioned, we are there in the market almost on a day-to-day basis and our approach or our intervention in the market is broadly premised on two basic principles. One is to prevent