Rupee has fallen sharply, RBI will act to curb volatility, not fix value: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said the rupee has depreciated "significantly" over the past year and a half, and the RBI will continue its efforts to prevent excessive volatility in the domestic currency.

Speaking at the Bloomberg New Economy Forum 2026, Sitharaman said the rupee has reached a low against the US dollar, and the RBI is taking efforts through its regulatory powers to ensure the domestic currency stays stable.

"They are not trying to fix the rupee. They are trying to stop the volatility. And for that, there is a lot of effort from the RBI side. So, these efforts from the RBI... will continue not to...fix the rupee. We would appreciate it if the rupee finds its own (value)," the minister said.

The Reserve Bank over the weekend announced a slew of measures to stem rupee fall.

The central bank announced the creation of a special window for oil marketing companies, which will take the dollar demand away from the spot market and tightened rules governing forex derivatives trades to curb speculative bets against the rupee.

It also asked banks to create a 20 per cent reserve for dollar purchases of over USD 2 million.

Sitharaman said the latest measures by the RBI supported the rupee as its value surged one per cent on Monday. On Tuesday, it appreciated to Rs 94.96 in the early trade.

"I'm sure there are efforts which the RBI would take further to make sure that the rupee doesn't become too volatile," Sitharaman said, adding that India's fundamentals are fine, with sound foreign exchange reserves.

The minister said most of the rupee's volatility is stemming from external challenges, while the government is ensuring that macroeconomic fundamentals remain sound within the country.

"... fiscal discipline is not going to be a matter which should worry investors. But as regards the rupee, and as regards the way it is reacting to the ups and downs with the dollar, yes, that's where the challenge is, and we will be attending to it," Sitharaman added.