Monetary policy is the activities governed by the central bank that aim to influence the management of the money supply and the interest rates in the country. 

With the majority stake held by the government, these companies are comparatively less volatile and stable in market actions.

It tracks periodical changes in prices and is thus monitored closely by policy decision-makers, analysts, businesses and consumers. 

Let's look at how factors like interest rate hikes, imports and exports, employment, and foreign exchange reserves affect the rupee's movement.