Indian rupee undervalued, Ashima Goyal and Sanjay Malhotra foresee recovery
Business
The Indian rupee is currently undervalued, and it might bounce back soon, at least that's what Monetary Policy Committee member Ashima Goyal thinks.
She pointed out that the rupee's Real Effective Exchange Rate (REER) has dropped to its lowest since 2014.
Sanjay Malhotra also agreed, saying the recent dip suggests the rupee is now cheaper than it should be.
Ashima Goyal cites REER rebound history
Goyal explained that whenever the rupee has hit these low REER levels in the past, it usually strengthened within a year.
The currency fell nearly 11% last financial year and slipped another 3% so far this year.
Both experts suggest it's worth keeping an eye on: history hints a comeback could be around the corner.