Reserve Bank of India Governor Sanjeev Malhotra said in a Monday interview that June measures to attract dollar inflows brought nearly $32 bln, mostly via the foreign-currency non-resident deposit scheme. He said about $7 bln, after tax changes, entered the Indian bond market as foreign securities investment. The RBI’s exchange-rate policy has not changed and it will intervene only against excessive volatility; he judged the rupee is not currently undervalued. Given current growth and inflation,

Reserve Bank of India Governor Sanjeev Malhotra said in a Monday interview that June measures to attract dollar inflows brought nearly $32 bln, mostly via the foreign-currency non-resident deposit scheme. He said about $7 bln, after tax changes, entered the Indian bond market as foreign securities investment. The RBI’s exchange-rate policy has not changed and it will intervene only against excessive volatility; he judged the rupee is not currently undervalued. Given current growth and inflation, the standing policy repo rate is appropriate, though rising food and fuel prices pose a risk of broader inflation pass-through.