Indian Rupee holds up well compared to other emerging currencies: RBI Chief
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Mumbai: Amid the struggling of rupee against the dollar, the RBI Governor Shaktikanta Das said the Indian currency when it compares to advanced and other emerging market currencies, it is holding well.
He also said the Indian economy is relatively performing well in the grim global market scenario thanks to the policies of the apex bank.
Addressing the BOB Annual Banking Conclave 2022, Das said that the considering volatility in the global market, the Central Bank is supplying the US dollar to ensure the market is active with adequate supply of liquidity.
The present situation in the market calls for special attention at the unhedged forex exposures factually rather than being alarmed by it, the Governor added.
"We have zero tolerance for volatile and bumpy movement of rupee; RBI actions have helped in smooth movement of rupee," Das said. He said that high-interest rates in the US along with increased risk aversion have fuelled the safe-haven demand for the US Dollar. He said that the RBI remains watchful of headwinds and will take measures as required.
The central bank chief stressed that even strong reserve currencies like the Japanese Yen have weakened. He noted that there's a genuine shortage of US Dollars due to imports.
With the inputs from agency