09-05-2025
India's Central Bank Ready to Stabilize Rupee as Tensions Rise
India's central bank doesn't expect wild swings in the rupee but is ready to use foreign reserves to preserve currency stability as tensions with Pakistan escalate, according to people familiar with the matter.
Currency market intervention could happen at the margins to iron out volatility, although the Reserve Bank of India will not target any specific level for the rupee, the people said, asking not to be identified given the sensitivity of the matter. The RBI is closely monitoring if speculative positions are being built and it won't hesitate to intervene to break those, one of the people said.
