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"A few directors explicitly supported the authorities view that exchange rate stability reflects improvements in Indias external position and that foreign exchange interventions have been used to avoid excessive volatility not warranted by fundamentals," said the IMF report.
"On the exchange rate front, the Indian rupee (INR) has exhibited low volatility and orderly movements relative to peers despite elevated US treasury yields and a strong US dollar," Das said.
Volatility in the rupee is hovering near the lowest in almost two decades and the currency has managed to avoid breaching a record low even as rising US rates wreaked havoc in emerging markets. Indias central bank has denied defending any levels but analysts have an array of theories as to what is going on in policymakers minds.
The rupee has been under pressure from a ballooning oil import bill, high inflation and the Federal Reserve's aggressive interest rate rises that have elevated yields on the US dollar.
Our currency has been less volatile this year than in 2021 and global trade integration calls for a freer float