RBI not trying to fix rupee but preventing excessive volatility: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said the Reserve Bank of India RBI may take further steps to prevent excessive volatility in the domestic currency according to news agency PTIShe noted that the rupee has depreciated significantly over the past one and a half year and said the rupee has reached a low against the US dollar and the financial regulator is taking efforts to ensure that the domestic currency stays stableThey RBI are not trying to fix the rupee They are trying to stop the volatility And for that there is a lot of effort from the RBI side So these efforts from the RBI will continue not tofix the rupee We would appreciate it if the rupee finds its own value she said at the Bloomberg New Economy Forum 2026Im sure there are efforts which the RBI would take further to make sure that the rupee doesnt become too volatile she addedThe minister stated that Indias fundamentals are fine with sound foreign exchange reservesShe pointed out that most of the rupees volatility is stemming from external challenges while the government is ensuring that macroeconomic fundamentals remain sound within the country fiscal discipline is not going to be a matter which should worry investors But as regards the rupee and as regards the way it is reacting to the ups and downs with the dollar yes thats where the challenge is and we will be attending to it Sitharaman addedThe Finance Minister said the latest measures by the RBI supported the rupee as its value surged one per cent on MondayRBI measures to support rupeeThe apex bank on Saturday announced several measures aimed at reducing immediate dollar demand and curbing excessive positions in the foreign exchange marketThe RBI created a special window for oil marketing companies which will take the dollar demand away from the spot market and tightened rules governing forex derivatives trades to curb speculative bets against the rupeeIn addition it asked banks to create a 20 per cent reserve for dollar purchases of over USD 2 millionFollowing the measures the rupee appreciated 93 paise logging its steepest singleday gain in more than six months on Monday to close at 9578 against the US dollar according to PTI On Tuesday it appreciated 82 paise to 9496 against US dollar in early tradeGovernor had said RBI will ensure the rupee stabilisesLast week after the monetary policy announcement RBI Governor Sanjay Malhotra had said that the regulator will ensure the rupee stabilises and will support it in reaching its correct value when the currency was inching towards its alltime low of 9696 against the dollar during intraday tradingWe will ensure that the rupee stabilises that the rupee finds its correct value and we will support an orderly movement of the rupee in finding its correct value and at the same time in ensuring that there is no excessive volatility he had saidThe rupee has been under pressure since the beginning of the West Asia conflict in late February The elevated crude oil prices pose a challenge to an oilimporting country like India India is the third largest importer and consumer of crude oilBy a number of estimates including the REER Real Effective Exchange Rate the rupee is not overvalued it may be undervalued Malhotra had saidWith inputs from PTI