Rupee down 11% in FY26, Sanjay Malhotra says undervalued
The Indian rupee has taken a hit lately, down 11% in FY26, including an over 5% slide since the U.S.-Iran conflict began in February.
RBI Governor Sanjay Malhotra thinks the rupee might actually be undervalued now, as it has fallen below the 100-per-dollar level.
RBI will not target rupee level
Malhotra made it clear that the RBI is not chasing a specific number for the rupee. Instead, it step in only to keep things from getting too wild.
We would intervene only to curb abnormal and high volatility or undue speculation, he explained, emphasizing its priority is keeping the currency market steady rather than aiming for a set value.
RBI Governor Malhotra says BoP manageable
Despite global tensions and rising oil prices, Malhotra pointed out that India's balance of payments is still solid.
He highlighted record foreign investment flows and stressed the need to boost exports and cut down on imports.
Confidently, he added, "So, I'm quite optimistic about having a manageable BoP, going forward,"