The Reserve Bank of India is expected to prioritize managing the pace of rupee depreciation rather than defending specific exchange rate levels, strategists say. This marks a tactical shift as the currency hits record lows, reflecting a more flexible approach to market-driven moves.

This strategy change signals the RBI's acceptance of a weaker currency amid global dollar strength and capital outflows. For importers and businesses, it means planning for more volatility instead of expecting a firm floor, potentially affecting pricing and hedging decisions across the economy.

Investors will watch for central bank interventions that smooth volatility without setting hard targets. The move aligns with India's broader economic policy of allowing market forces greater play while managing inflation risks from a cheaper rupee.