Exchange rate is not a policy tool to fight tariffs, says RBI deputy governor

The comment comes as the rupee faces consistent pressure due to worries over the impact of steep U.S. trade tariffs levied on Indian exports.

The Indian rupee's exchange rate is not a policy tool to fight trade tariffs, a senior Indian central bank official said on Wednesday.

The exchange rate does not serve as a policy tool in a market where its level is determined by market forces, Reserve Bank of India Deputy Governor Poonam Gupta said at an event in Mumbai.

The comment comes as the rupee faces consistent pressure due to worries over the impact of steep U.S. trade tariffs levied on Indian exports.

The currency was last quoted at 88.2250 against the U.S. dollar and has declined 3% over 2025 so far.