Rupee may be undervalued, markets can be irrational: RBI governor Sanjay Malhotra
Times of India 1 hr ago·8 Oct 2026, 1:14 am
RBI Governor Sanjay Malhotra recently suggested that the Indian rupee may be undervalued. He noted that markets can often behave irrationally, which could eventually correct the currency's current weakness. This perspective implies that the central bank might consider interventions to stabilize the exchange rate if the depreciation continues.
For investors, this commentary signals potential volatility in the currency market. A weaker rupee can increase the cost of imported goods and raw materials, which may squeeze corporate profit margins. However, a cheaper currency could also make Indian exports more competitive on the global stage.
Investors should monitor the central bank's future statements and actions. If the RBI steps in to support the rupee, it could provide immediate stability. Conversely, continued global headwinds or a widening trade deficit might force the currency to depreciate further, impacting the broader market sentiment.
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- Category: Corporate Action.
- Flagged as a high-impact, market-moving story.
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