Rupee undervalued, RBI governor says, even as he promises stability against dollar
Mint 54 min ago·7 Oct 2026, 9:04 am
RBI Governor Sanjay Malhotra has stated that the Indian rupee is currently undervalued but emphasized that the central bank will prioritize stability over aggressive intervention. He assured investors that the rupee will find its natural level without experiencing excessive volatility against the US dollar.
This commentary is significant for investors as it signals the RBI's commitment to managing currency fluctuations. While the rupee is expected to appreciate over time, the central bank will act to prevent sharp swings that could impact import costs and foreign portfolio flows.
Investors should monitor global crude oil prices and US Federal Reserve interest rate decisions. These external factors will play a crucial role in determining the rupee's future direction and the RBI's policy response.
Excerpt from Mint
The RBI will ensure that the rupee stabilises, that the rupee finds its correct value, while ensuring that there is no excessive volatility, Governor Sanjay Malhotra says. The rupee may be “undervalued” as per many estimates, Reserve Bank of India Governor Sanjay Malhotra said on Wednesday, and assured that the…Read the original at Mint
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