Citing global conditions as the reason for the depreciating rupee, Gokarn said that there was no need for the central bank to intervene in the foreign exchange market.
The year saw rupee depreciating around 9 per cent against the US Dollar. The depreciation has further caused oil marketing companies to raise the prices of petrol. Meanwhile, talking about the likeliness of the rate hike to take a pause in RBI's next policy review to be held on December 16, the governor said that the decision would depend upon the inflation condition, which would also include the crude oil prices.
With the increase of 25 basis points in the lending rates announced in its last monetary policy, RBI increased the interest rates for the thirteenth time since March 2010, in a bid to tame inflation.