🔔Join APTI PLUS Prelims Mirror 2026 | All India Open Mock Test Series on 12th April, 26th April & 3rd May 2026 |Register Now!
Amid rising geopolitical tensions and crude oil prices, India’s economy faces pressure with a record rupee fall. The RBI is injecting liquidity via OMOs to prevent a cash crunch, support government borrowing, and manage risks from a widening current account deficit, inflation, and slower GDP growth.
Click to View MoreThe rupee’s fall past 90 reflects a strong US dollar, FPI outflows and a widening trade deficit. While it raises imported inflation and debt costs, it aids exports like IT and pharma. The RBI follows a managed float, using forex reserves to limit volatility and maintain economic stability.
Click to View MoreThe Reserve Bank of India (RBI) manages rupee depreciation through tools like selling US Dollars and adjusting interest rates, addressing factors like trade deficits and capital outflows. A weaker rupee boosts exports but exacerbates inflation and increases debt costs, crucial for India's economic stability.
Click to View More
© 2026 iasgyan. All right reserved
