Reserve Bank Governor Sanjay Malhotra on Saturday said that the the central bank doesn’t target a particular “price level” of the rupee and daily fluctuations of the currency value shouldn’t be a worry.

The focus rather should be on medium- to long-term changes in rupee’s value, he said.

The central bank’s effort is to curb excessive volatility. “We depend on market forces to determine price levels,” said Malhotra, who was addressing the media after the meeting of Finance Minister Nirmala Sitharaman with the Reserve Bank board.

 Malhotra said a 5% depreciation in the value of rupee impacts domestic inflation to the extent of 30-35 basis points. 

On Friday, the day the RBI cut rates by 25 basis points, the rupee recovered marginally to close at 87.5 against the US dollar.