IMF Urges Greater Rupee Flexibility as RBI Steps Up Currency Support
What Happened
On October 21, 2026, IMF Asia-Pacific Director Krishna Srinivasan said exchange rates should absorb global economic shocks, while acknowledging that currency intervention can offer short-term relief. His comments came as the RBI used dollar sales and special facilities for oil companies to support the rupee. The currency strengthened to ₹94.46 per US dollar on Wednesday, according to Reuters.
Key Takeaways
The IMF favours allowing the rupee to adjust to external pressures rather than relying heavily on currency intervention. The RBI's recent measures have supported the rupee, but elevated oil prices and capital outflows remain concerns.