Forex volatility a concern for RBI

The Reserve Bank of India is concerned about volatility in the rupee's exchange rate, RBI deputy governor Rakesh Mohan said on Wednesday 5 October.

"We have to take concern about exchange rate instability, volatility. Volatility or instability is bad at least from Reserve Bank of India point of view," Mohan told a banking seminar.

"Now why we are concerned about volatility is because it can have contagion effects...therefore we have to take concern about volatility in the exchange rate market."