Mumbai, Feb. 7 -- The new RBI governor Sanjay Malhotra, in his first monetary policy stated that the Indian economy, though continuing to remain strong and resilient, also did not remain immune to the global headwinds, with the Indian Rupee coming under depreciation pressure in the recent months. With receding expectations on the size and pace of rate cuts in the US, the US dollar has strengthened and bond yields have hardened. Emerging Market Economies (EMEs) have witnessed large capital outflows, leading to sharp depreciation of their currencies and tightening of financial conditions.

At the Reserve Bank, we have been employing all tools at our disposal to face the multi-pronged challenges, he said. The Indian rupee (INR) depreciated b...