Sep. 5, NEW DELHI: The Reserve Bank of India (RBI) Governor Shaktikanta Das stated on Monday that the Indian rupee has "held its own" and moved in a "orderly manner at a time of sharp depreciation in other currencies" despite the extreme volatility in the world's stock markets, particularly following remarks made by US Federal Reserve chairman Jerome Powell at the Jackson Hole symposium last week.

Speaking at the annual meeting of the Fixed Income Money Market and Derivatives Association of India, Das stated that "the recent commentary from the US Fed at Jackson Hole on the future trajectory of US monetary policy has infused substantial volatility into global financial markets, with large spillovers and knock-on effects on emerging market economies (EMEs)" (FIMMDA).

However, he soon added that the RBI had intervened in the currency markets to stop the exchange rate from fluctuating too much.

According to him, "RBI's strategy is to limit excessive volatility of the rupee, or the exchange rate, and also anchor expectations surrounding the currency's depreciation."  Das added that the monetary policy of the central bank will be "watchful, nimble-footed and calibrated" moving forward. He said, despite other big economies either entering recession or significantly moderating their economic velocity, India is widely believed to be the world's fastest expanding economy this year.

Das stated that the Indian financial markets had recovered from the lows reached in the immediate aftermath of the Jackson Hole event, in reference to Powell's remarks on continuing with rate hikes. The resilience displayed by the Indian financial markets "in this uncertain global environment" "reflects the sturdy macroeconomic foundations of the economy," he said.

Powell had previously stated that the US Federal Reserve is likely to keep interest rates high for some time while speaking at the Jackson Hole conference last week.

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