MUMBAI (Reuters) - The Reserve Bank of India (RBI) said on Friday it has been trying to ensure the foreign exchange market remains liquid and is not targeting any particular level.
“The RBI’s response to these unsettled conditions has been to ensure the foreign exchange market remains liquid with no undue volatility,” the central bank’s governor, Urjit Patel, said after monetary policy meeting.
“There is no target or band around any particular level of the exchange rate which is determined by the market forces of demand and supply,” he said.
The rupee extended its losses to hit a record low of 74.20 rupees after the RBI held its policy rate unchanged. The rupee has lost nearly 14 percent so far this year.
Reporting by Suvashree Dey Choudhury and Rajendra Jadhav; Editing by Nick Macfie