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How does the change in Indian currency affect Indian economy?
What role does monetary policy play in controlling currency fluctuations in India?
The Reserve Bank of India has the role of maintaining stability in the exchange rate, through various measures such as open market operations, changes in bank rates, and intervention in the forex markets. Monetary policy measures such as changes in interest rates or the supply of money can affect the exchange rate, especially if there is a change in interest rate differentials compared to other countries.