The Rupee’s depreciation, driven by a strong dollar and FPI outflows, spikes imported inflation but boosts exports. While the RBI stabilizes volatility via forex interventions and internationalization, long-term stability requires narrowing the Current Account Deficit and structural economic reforms.
Click to View MoreThe RBI manages a trilemma, balancing growth and inflation against a strong USD. Through spot market interventions and NDF influence, it curbs rupee volatility rather than fixing a rate, navigating geopolitical risks and trade deficits to maintain macroeconomic stability.
Click to View More
© 2026 iasgyan. All right reserved