RBI to keep working to stop wild rupee swings, says Sitharaman

Currency Volatility

Union Finance Minister Nirmala Sitharaman stated that the Reserve Bank of India will continue its efforts to stop wild swings in the rupee. She spoke on Tuesday, October 13, 2026, at the Bloomberg New Economy Forum 2026. The rupee has dropped very significantly over the past year and a half. Global uncertainties are the main cause of this fall, even though India has strong economic fundamentals and sound foreign exchange reserves.

Recent RBI Steps

The central bank recently announced steps to stop the rupee from falling further. These include a special window for oil marketing companies to take dollar demand away from the spot market. The RBI also tightened rules on forex derivatives trades to stop speculative bets against the currency. Sitharaman noted that these recent measures helped the rupee. Its value went up by 1 percent on Monday, October 12, 2026, and it appreciated to ₹94.96 in early trade on Tuesday. She clarified that the RBI is not trying to fix a specific value for the rupee, but wants it to find its own level.

Market Taxes

Sitharaman also spoke about the debate on tax rationalization in the securities market. She called the discussion around securities transaction tax and long-term capital gains tax healthy. She noted that investors in India and abroad have commented on the long-term capital gains tax. She said she will keenly hear these debates as preparation for the Union Budget has started.

Context

The Reserve Bank of India steps in during periods of sharp currency movement to protect the domestic economy from sudden external shocks. Managing the exchange rate while keeping foreign exchange reserves strong is a key part of central bank policy in emerging markets like India.