Without giving any timeline for the Reserve Bank of India to intervene in the forex market, Dr D. Subbarao, RBI Governor, said the apex bank was closely watching the situation.
“The RBI can intervene and we will intervene when it is in consistent with our policy,” he told mediapersons on the sidelines of a conference here on Tuesday.
The rupee fell to a new low during the day, hitting 52.73 against the dollar.
“Our policy remains unchanged, which is to manage the volatility in the exchange rate. The foreign exchange rate is being driven by global dynamics and what direction it moves will depend on the credible resolution of the external situation,” Dr Subbarao said.