RBI Governor Sanjay Malhotra shattered illusions of laissez-faire currency management with a speculated $15 billion intervention—just two days post-MPC. The central bank signalled that speculative fervour had gone too far, jolting traders who had assumed RBI was letting the rupee slide to prove it wasn’t artificially pegging the currency.For months, the RBI had held the rupee steady through frequent interventions on both sides of the market. This unusual stability in the face of a strengthening dollar led to speculation that the central bank was quietly shifting its policy, tethering the rupee to the dollar. Critics argued that this strategy, if deliberate, was unsustainable without a structural boost to foreign capital inflows.
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