Outcomes important not instruments: Reddy

Reserve Bank of India Governor Y V Reddy today said that the central bank is closely monitoring the movments in the foreign exchange market, and was trying to identify whether there are any signs of excess volatility.

"The outcomes are more important, not the instruments," Reddy said when asked whether RBI had intervened in the foreign exchange market when the rupee rose sharply in morning trades today, and added at present there is no change in RBI's exchange rate policy.

The spot rupee hit a high of 44.35 per dollar in early trades before dollar buying by PSU banks saw it close at 44.71 per dollar. It had closed at 44.57 per dollar yesterday.