Lower volatility of the INR bears testimony to India's macroeconomic and financial stability, Says RBI Governor

According to the Reserve Bank of India governor, during 2024-25 (up to August 7), the Indian rupee (INR) remained largely range-bound. The lower volatility of the INR bears testimony to Indias macroeconomic and financial stability, and an improving external sector outlook. In the last few days, global financial markets have seen turmoil on concerns of growth slowdown in a major economy, flare up in geopolitical tensions in the Middle East and the unwinding of the carry trade. These developments have implications for emerging market economies. In this context, it would be important for market participants to keep in mind the strength of Indias macroeconomic fundamentals, which remain robust. India has built strong buffers that impart resilience to the domestic economy from such global spillovers. The Reserve Bank remains committed to ensure orderly evolution of financial markets in its regulatory domain.