USD/INR Price News: Indian rupee rises to 73.50 amid RBI comments, record rally in stocks

No change is expected in the inflation target band or monetary policy framework next year, the Reserve Bank of India (RBI) Governor Shaktikanta Das said in an interview with Economic Times on Monday.

Key quotes

"I am not aware of any such thinking to change the framework. It is cast in law. I think we should be able to deal with it within the existing framework."

"The law says at least once in five years the government will notify the inflation target. It doesn't provide for a review of the framework. If you make the band too wide then it loses its meaning.”

"We are very much aware that a premature withdrawal will be detrimental to growth.”

"A delayed withdrawal will also have its own negative effects. We are fully aware and conscious of both ends of the situation. Therefore, we will have to take a balanced call and at the right time.”

Indian stocks at record highs, INR advances

Meanwhile, the Indian equity indexes joined the global market's advance, as the vaccine and US fiscal stimulus optimism continue to boost the risk rally.

Further, record inflows from foreign institutional investors (FIIs) and Burger King’s stellar IPO debut adding to the record surge in the S&P BSE Sensex Index, which hit record highs above 46K on Friday.

The Indian rupee rises 0.24% against the US dollar to weekly highs of 73.45 amid the gains in equities and foreign fund influx.

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