RBI’s August Policy Neutral for INR, Seen Defending 97 Band: SocGen

Societe Generale analysts Kunal Kundu and Galvin Chia judged the Reserve Bank of India’s August policy outcome as neutral for the Indian rupee. In their note, they highlighted fewer comments on the currency and capital flows compared to prior statements.

The bank noted that the RBI is seen defending the 97 band onshore, indicating intervention to manage the exchange rate. The analysts also recalled Governor Malhotra’s view on the rupee, though the policy statement itself offered limited direct commentary on the INR’s recent moves.

The assessment suggests no strong directional signal from the latest policy, leaving the near-term outlook for the rupee tied to global risk appetite and the RBI’s visible line in the sand at 97.