Archive · 8 Oct 2026
RBI Governor Says Rupee Undervalued, Vows Orderly Stability Measures
India’s rupee has been weakening against the US dollar.
Reserve Bank of India Governor Sanjay Malhotra said some estimates suggest the rupee may be undervalued.
He said the central bank will support an orderly move toward what he called the rupee’s correct value.
It also wants to prevent sudden, excessive swings.
Malhotra said markets can behave irrationally for a while but show the right value over the long term.
He spoke on Wednesday as the rupee neared an intraday record low of 96.96 per dollar.
The currency has faced pressure this year, including from higher oil prices linked to the West Asia conflict.
One report said a central-bank swap facility eased pressure for a few days, but the rupee later came under pressure again.
Reserve Bank of India Governor Sanjay Malhotra said estimates, including the Real Effective Exchange Rate, suggest the rupee is not overvalued and may be undervalued.
Malhotra said the RBI would support an orderly move toward the rupee’s correct value while working to prevent excessive volatility.
He made the comments on Wednesday as the rupee approached its intraday record low of 96.96 per US dollar.
Malhotra said markets can be irrational in the short term but reflect their right value over the long term.
The rupee has faced pressure this year amid the West Asia conflict and higher crude oil prices; one report also said the RBI’s concessional swap facility helped ease pressure temporarily.
- Who
- Reserve Bank of India Governor Sanjay Malhotra
- What
- He said the rupee may be undervalued and that the RBI would support an orderly move toward its correct value while limiting excessive volatility.
- When
- Wednesday; the rupee was nearing its intraday record low.
- Where
- At the RBI headquarters in Mumbai.
- Why
- The rupee has faced pressure amid the West Asia conflict and higher crude oil prices.
- Speaker
- Sanjay Malhotra, Governor of the Reserve Bank of India
- Currency
- Indian rupee
- Valuation
- Malhotra said estimates including the Real Effective Exchange Rate indicate the rupee may be undervalued.
- RBI approach
- Support an orderly move toward the rupee’s correct value and avoid excessive volatility.
- Intraday level cited
- 96.96 rupees per US dollar, described as the all-time low.
- Pressure factors
- The West Asia conflict and higher crude oil prices.
- Swap facility
- One report said banks mobilised nearly USD 133 billion under the FCNR(B) deposits facility, easing currency-market pressure for a few days.
