RBI study finds small forex interventions help stabilize India's rupee against global market volatility.

A recent RBI study shows that smaller, strategic interventions in foreign exchange markets effectively manage currency volatility in India, rather than large-scale interventions aimed at controlling exchange rates. The study finds that global spillovers, particularly portfolio flows, are the main drivers of volatility. It concludes that interventions help stabilize the rupee during global financial challenges, minimizing volatility compared to other major currencies.

3 months ago
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