Rupee no longer overvalued, may boost India's trade

The Indian rupee has recently become undervalued compared to other currencies.

This change happened because of fluctuations in global oil prices and tensions in West Asia.

The rupee's value is measured using special indexes like NEER and REER, which show how it compares to other currencies.

In November 2024, the rupee was overvalued, but by May 2026, it had become undervalued.

This means the rupee is now weaker, which could help Indian exports and make domestic products more competitive.

However, it might also make imports more expensive.

The rupee is now even more competitive than the Chinese yuan.

Whether this will help India's economy in the long run depends on many factors, including global events and trade policies.