RBI's active management of liquidity and foreign exchange limits INR volatility: FinMin

The Indian rupee (INR) traded within a narrow range of 87.8-88.8 per US dollar in October, remaining largely unchanged from September levels, the finance ministrys October Monthly Economic Review said. This limited volatility reflected a period of relative stability in global currency markets, supported by steady portfolio flows and the RBIs active management of liquidity and foreign exchange. Looking at the longer trend, the INR depreciated by 3.5 per cent against the US dollar from the end of March to the end of October 2025, demonstrating a gradual weakening consistent with broader emerging-market currency trends. Further, the report mentioned that as of November 7, 2025, Indias foreign exchange reserves stood at USD 687 billion, providing an estimated import cover of 11 months and covering 91.9 per cent of Indias total external debt as of the end of June 2025.

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