New Delhi, Aug. 19 -- India should not seek to defend the rupee against depreciation and should instead allow the currency to find its market-driven level while keeping inflation under control, Sanjeev Sanyal, Member of the Economic Advisory Council to the Prime Minister (EAC-PM), said in an interview with ANI.

Sanyal said India had chosen to focus on controlling inflation rather than targeting the rupee's exchange rate. Under this approach, monetary policy should mainly aim to keep prices stable instead of trying to maintain the rupee at a specific level.

"When we decided to create an inflation targeting framework, then we clearly opted for monetary policy over exchange rate," Sanyal said, explaining the trade-off faced by economies wi...