Archive · 23 Sep 2026
RBI Deputy Governor Says Rupee Could Stabilize, Appreciate
Poonam Gupta, a senior official at India’s central bank, said the rupee might become stronger.
She said India’s payments position with other countries is improving.
India is earning money from services, exports and money sent home by workers abroad.
The country may also attract more foreign investment.
These factors could help support the rupee.
The rupee had fallen to 96.96 for one US dollar in May and later closed at 95.74.
Gupta said India’s economy could keep growing by more than 7 percent.
She also said Indian shares may look more attractive if the gap between economic growth and market performance continues.
RBI Deputy Governor Poonam Gupta said the rupee could stabilize and potentially appreciate as India’s balance-of-payments outlook improves.
She expects the current account deficit to narrow, while capital flows could become more favorable later in the financial year.
India’s services exports, remittances, merchandise exports, lower oil-import dependence and possible bond-index inclusion could support external resilience.
The rupee closed at 95.74 per US dollar after reaching a record low of 96.96 in May; Gupta said its recent depreciation may be temporary.
Gupta projected broad-based growth above 7%, while noting that Indian equities have lagged bond-market optimism and could eventually become more attractive.
- Who
- Reserve Bank of India Deputy Governor Poonam Gupta.
- What
- Gupta said the rupee could stabilize and possibly appreciate as India’s current account and capital-flow outlook improves.
- When
- She made the remarks at the 13th SBI Banking and Economics Conclave; the rupee closed at 95.74 per US dollar on Wednesday.
- Where
- At the SBI Banking and Economics Conclave.
- Why
- She cited a narrowing current account deficit, foreign-exchange capacity, potential capital inflows, resilient growth and India’s external-sector strengths.
Economic Resilience
Market Caution
Rupee outlook
Economic Resilience
Gupta said the rupee could stabilize or appreciate because India’s balance-of-payments position, current account and potential capital flows are improving.
Market Caution
The rupee had recently reached a record low of 96.96 per US dollar and had depreciated 13.1% between March 31, 2025 and September 16, 2026, showing continued market pressure.
Economy versus equities
Economic Resilience
Gupta said resilient, broad-based growth above 7%, credible monetary policy and easing structural inflation pressures support India’s economic outlook.
Market Caution
She noted that Indian equity markets have not matched the optimism seen in the bond market, partly because other economies currently have more promising artificial-intelligence-led market narratives.
- Speaker
- Poonam Gupta, Deputy Governor of the Reserve Bank of India.
- Rupee record low
- 96.96 per US dollar in May.
- Latest reported close
- 95.74 per US dollar on Wednesday.
- Current account deficit
- Gupta said it has declined as a share of GDP and could shrink further in coming years.
- Balance-of-payments support
- Services exports, remittances, merchandise exports, lower oil-import dependence and possible capital inflows were cited as supportive factors.
- Growth outlook
- Gupta described India’s growth equilibrium as above 7% and said it could reach 8% if external conditions are supportive.
- Market performance
- She said bond markets had performed well, while equity markets had not reflected the same optimism.
