India's central bank will likely continue its efforts to curb volatility in the rupee, Finance Minister Nirmala Sitharaman said at the Bloomberg New Economy Forum in New Delhi. The Reserve Bank of India is "not trying to fix the rupee. They are trying to stop the volatility, and for that there is a lot of effort from RBI side," Sitharaman noted, adding that these efforts will continue.
The rupee, down 5.7% so far this year, is among Asia's worst-performing currencies despite repeated interventions by the RBI. Over the weekend, the central bank unveiled forceful measures that propelled the rupee to its biggest gain in six months, though longer-term pressures from India's dependence on imported energy, twin deficits and volatile capital flows remain.
Sitharaman said depreciation is driving capital outflows and reducing investor confidence. The government maintains sound fiscal footing and focuses on improving ease of doing business to court investors diversifying away from China. In 2025-26, foreign direct investment surged to almost $59 billion, up 18% year-over-year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing