Das said that the RBI has been supplying US dollars to the market to ensure that there is adequate forex liquidity. 

The RBI Governor also noted that the RBI has zero tolerance for volatile and bumpy movement in the rupee and added that the central bank's actions have helped in smoother movement.

Reserve Bank of India (RBI) Governor Shaktikanta Das stated that the Indian rupee is holding up well relative to both Advanced and emerging markets peers. This is because underlying fundamentals are strong, resilient and intact.

This move comes after the rupee has hit the 80-level against the dollar. 

The RBI Governor also noted that the RBI has zero tolerance for volatile and bumpy movement in the rupee and added that the central bank's actions have helped in smoother movement.

Das said that the RBI has been supplying US dollars to the market to ensure that there is adequate forex liquidity. 

Shaktikanta Das added, "Consequently, inflationary pressures are building up and external funding conditions are becoming tighter, posing financial stability challenges in emerging market economies. Overall, the global situation remains grim amidst fluid geopolitical situation while the war and the pandemic add to the forces of disintegration and fragmentation of the global economy."

"Higher interest rates in the US along with increased risk aversion among global investors have fuelled safe haven demand and strengthening of the US Dollar. the Indian economy remains relatively better placed, drawing strength from its macroeconomic fundamentals.," added Das.

RBI said that there is a genuine shortfall of supply of forex in the market relative to demand because of import and debt servicing requirements and portfolio outflows, the RBI has been supplying US dollars to the market to ensure that there is adequate forex liquidity.