He added such a policy would mean that the central would typically intervene on both sides of the exchange rate.
The rupee has risen in recent months and in the process has maintained its parity with the dollar seen at the beginning of the year, Rajan told reporters in Mumbai.
The rupee has gained 1.89 percent against the dollar in the month to date and 2.93 percent in the past six months.

Meanwhile, with retail inflation remains at higher level, the RBI on Tuesday decided to keep interest rate unchanged, saying that future policy stance will be influenced by inflation outlook.

The RBI kept interest rate unchanged at 8 percent and  retained growth projection for current fiscal at 5.5 percent.

Avoiding haste, the RBI has decided to take stance on future polices as per the inflation outlook. However, it has put number of dis-inflationary forces like low oil prices, in play.

Although consumer price index (CPI), which the Central bank is monitoring closely, has shown a declining trend in the past few months, the levels are still out of its comfort zone.

The RBI has set a glide path for CPI inflation at 8 percent by January 15 and 6 percent by January 2016.

The CPI eased to 7.8 percent in August from 8.59 percent in April.

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