RBI to act only if rupee volatility rises beyond a point: Neelkanth Mishra

Mishra said rupee is expected to average around 90 per dollar by June 2026 and weaken further to 92 per dollar by June 2027

The rupee’s sharp depreciation against the dollar in the past few weeks does not pose a fundamental concern and the Reserve Bank of India (RBI) will step in to contain volatility only if depreciation accelerates beyond a tolerable pace, according to Neelkanth Mishra, chief economist, Axis Bank, and head of global research, Axis Capital. 

 

Mishra is also part-time member of the Prime Minister’s Economic Advisory Council.

 

The rupee breached 91 against the dollar on Tuesday, and it has touched new lows for the last four consecutive sessions. 

 

Mishra said the rupee was expected to average around 90 by June next