India should not deplete reserves to defend rupee, ex-RBI chief Raghuram Rajan says
CNBC-TV18 1 hr ago·27 Oct 2026, 9:15 am
Former Reserve Bank of India governor Raghuram Rajan has advised against using foreign exchange reserves to aggressively defend the rupee against depreciation. He argues that depleting these reserves to prop up the currency is not a sustainable strategy and could hurt the economy in the long run.
Rajan suggests that a certain level of currency weakening is natural and can actually be beneficial. He notes that a weaker rupee makes Indian exports more competitive globally, which can help balance the trade deficit and support domestic industries.
For investors, this commentary highlights the delicate balance the market must maintain. While a sharp, sudden drop in the rupee can create volatility, a gradual depreciation may support export-driven sectors. Market participants should keep an eye on foreign inflows and global cues to gauge the currency's future path.
Excerpt from CNBC-TV18
Published On Oct 27, 2026 | 14:45 IST Last Updated On Oct 27, 2026 | 14:45 IST Former RBI governor Raghuram Rajan said India should not fixate on currency levels or deplete reserves to defend the rupee, as some depreciation helps stabilise exports amid pressures. India should not ”fixate on a number” for its currency…Read the original at CNBC-TV18
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- Category: Economy.
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