Sanjay Malhotra says RBI steadied rupee, not chasing US dollar
The Indian rupee was on a rollercoaster lately, but the Reserve Bank of India (RBI) jumped in to calm things down.
RBI Governor Sanjay Malhotra explained that its goal isn't to chase a specific US dollar rate, just to keep the market steady.
Their moves helped the rupee recover from ₹93 per US dollar to ₹92.61.
RBI taps reserves after oil spike
A spike in global crude oil prices put pressure on the rupee, pushing it to a record low of ₹95 per US dollar at one point.
The RBI responded by intervening both locally and offshore, which meant using some of India's foreign reserves.
These dropped from $730 billion to $688 billion in March.
Banks unwind currency trades, Crisil approves
Because of the RBI's strict actions, banks were forced to unwind risky currency trades, which helped reduce market chaos even more.
Analysts at Crisil gave a nod of approval for these steps, saying they really helped bring stability during uncertain times globally.