Less fluctuation in rupee compared to other currencies of the world: RBI Governor

Mumbai: Addressing a program of the Federation of Indian Chambers of Commerce, the Reserve Bank Governor also said that inflationary expectations are now under control. But headline inflation remains fragile and remains affected by food price shocks.

On the exchange rate front, despite rising US bond yields and a strong US dollar, the Indian rupee has seen less volatility against other major currencies and remained stable. This is attributed to our strong macroeconomic fundamentals and good foreign exchange reserves. The US dollar index has softened a bit in the last three or four days and US bond yields have also come down.

Consumer Price Index-based inflation stood at 4.9 percent in October. This is due to deliberate increase in policy rate by RBI and measures to improve cash position from time to time.

RBI's target is to bring the retail inflation rate down to four percent and we are keeping an eye on it. Das also advocated reforms in agricultural marketing and related value chains to achieve sustained high growth, sustainably stabilize prices and reduce shocks from price increases.