Mumbai, July 16 -- The Reserve Bank of India (RBI) is expected to aggressively intervene in the currency markets if the rupee faces excessive downward pressure toward the 98 to 100 mark, though short-term capital inflows will provide a major cushion against global energy shocks, according to Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities.

Speaking to ANI on Thursday, Banerjee highlighted that while the rupee has already depreciated by nearly 8-9 per cent since the onset of the West Asia conflict, giving sufficient breathing room to domestic exporters, any further slides would directly fuel domestic inflation.

"The RBI will be quite aggressive there," Banerjee said, adding that the central bank is heavily b...