RBI not targeting any particular exchange rate: Subbarao

With rupee hitting 11-month lows against dollar, Reserve Bank Governor D Subbarao on Monday said it is not targeting any particular exchange rate or any band.

"We do not target an exchange rate. We do not target an exchange rate band. And I believe that our actions or inactions have been consistent with our policy," he told PTI in an interview in New Delhi.

Continuing its free fall for the fifth straight session, the rupee today slumped by 26 paise to hit a new 11-month low of 56.76 on fag-end dollar buying and capital outflows from local equities.

In the last five days, rupee has weakened by nearly 120 paise against a dollar and has come precariously close to rupee's all time low of 57.32 touched last June-end.

Spelling out the policy stance, the Governor said RBI intervenes in the foreign exchange market to manage volatility and to prevent disruptions to the macroeconomic situations.

"That has been the policy, (and) that remains the policy," he said.

Supported by portfolio capital inflows and various reform measures announced during the period, the rupee remained strong during December 2012 to early-February 2013.

However, the rupee witnessed some weakness during the second week of February to early March. It gained some strength to remain largely range-bound and saw subsequent appreciation during April 2013.

Rupee started its downward journey against the dollar in May and hit 11-month low levels.