At best the Reserve Bank can attempt to smooth the peaks and troughs of the exchange rate. Of course, reasonable people can differ on what is the appropriate scale of intervention used to smooth some of the volatility.
But the old economic saying that there is no free lunch still applies: the greater the scale of intervention, the greater the financial risk carried by the tax payer. More active macro-prudential policy has been undertaken recently to help reduce the buildup in systemic risk in the banking sector resulting from imbalances in the housing sector.