The Reserve Bank of India (RBI) has responded to recent volatility in the Indian rupee, attributing it to excessive speculation in the foreign exchange market. RBI Governor Shaktikanta Das clarified that the central bank's recent measures, including capping net open positions in the onshore market at $100 million, are temporary and not indicative of any structural changes. In March, the rupee faced significant depreciation pressures, reaching a record low of 95 per US dollar. The rupee posted its largest annual decline in 14 years, depreciating by 9.88% against the dollar. The RBI's actions aimed to stabilize the currency and prevent an artificial drying up of supply in the market, which had been affecting prices. Despite the volatility, the RBI remains committed to the long-term goal of rupee internationalization and efficient price discovery in the currency market.