Reserve Bank of India (RBI) governor Sanjay Malhotra on Friday said it does not target any specific level or band of the rupee and that India’s exchange rate policy has remained consistent over the years.

His remarks come at a time the Indian currency has been touching record lows due to various factors. Its depreciation has led to the view that under the new regime, the RBI is loosened its grip on the unit. The RBI under Shaktikanta Das had kept the rupee on a tight leash through frequent interventions amid various international headwinds.

The rupee on Friday ended on a higher ground at 87.43 against the US dollar. On Thursday, it had settled at a record close of 87.58 after touching 87.59 in intra-day trades.

“I would like to mention here that the Reserve Bank’s exchange rate policy has remained consistent over the years. Our stated objective is to maintain orderliness and stability, without compromising market efficiency. Accordingly, our interventions in the forex market focus on smoothening excessive and disruptive volatility rather than targeting any specific exchange rate level or band. The exchange rate of the Indian rupee is determined by market forces,’’ Malhotra said.