GK and monthly revision

How to strengthen Indian rupee without a rate hike

The Indian Rupee has faced significant depreciation against the US Dollar since early 2025, prompting the Reserve Bank of India (RBI) to implement measures aimed at stabilizing the currency. These measures include interventions in foreign exchange markets and the proposal of a foreign exchange cash reserve ratio, which seeks to enhance capital inflows without increasing policy interest rates. This situation is crucial as it reflects the challenges faced by the Indian economy and the RBI's strategies to maintain currency stability.