‘Value of INR mkt-determined with no specific level or band’

Finance Minister Nirmala Sitharaman on Tuesday said the rupee's value against the US dollar is market-determined and there is no target or specific band for the domestic currency.  

"The government closely tracks the trends in key economic parameters, including exchange rate movements, along with their implications for economic growth and fiscal stability. These issues are discussed at various fora at various levels of the government," she said in a written reply in the Rajya Sabha. 

On Tuesday, the rupee pared initial losses and settled 12 paise higher at ₹96.24 (provisional). Traders attribute the recovery to Reserve Bank of India intervention. 

Sitharaman said the value of the rupee is market-determined, with no target or specific level or band, and the central bank regularly monitors the foreign exchange market and intervenes in situations of excess volatility.  

Further, the Reserve Bank of India monitors key developments across the globe which may have an impact on the USD-INR exchange rate, she said.  Various measures have been taken by the central bank to boost forex inflows, which in turn may ease the pressure on the domestic currency.  These include amendments to the External Commercial Borrowings framework in February 2026 through the expansion of eligible borrower and recognised lender bases, the rationalisation of borrowing limits, and restrictions on average maturity periods. -PTI