RBI interventionIndia’s exchange rate regime underwent a change in 1993 when it moved to a market-determined exchange rate regime. After all, intervention, especially if it is asymmetric, does affect the level of exchange rate while minimising its volatility. What is hitting the rupee as of now are capital outflows. Capital outflows will get accelerated with every fall in the value of the rupee. When capital outflows happen because of the sale of stocks, they have a direct impact on the stock market.

Source: The Hindu January 27, 2026 20:05 UTC