Overview
- Malhotra said there is no red line at 90 or 91 per dollar and that market forces will set the exchange rate with the RBI smoothing excessive swings.
- The rupee recently crossed Rs 90 to the dollar, with the RBI pointing to strong buffers such as roughly $690 billion in foreign exchange reserves and a manageable current account.
- Following a 125-basis-point easing cycle, policy will be decided meeting by meeting as inflation, unusually low in recent prints, is projected to move toward 3–4%.
- The governor highlighted steady long-term foreign inflows, noting about $15 billion committed or invested in private financial entities in 2025.
- He urged protection of central bank independence, referencing DOJ grand jury subpoenas to Fed Chair Jerome Powell and a public show of support from global central bankers.