RBI Governor Says Rupee May Be Undervalued After Recent Depreciation
Updated
Updated · Bloomberg · May 25
RBI Governor Says Rupee May Be Undervalued After Recent Depreciation
2 articles · Updated · Bloomberg · May 25
Sanjay Malhotra said the Indian rupee may now be undervalued, arguing its recent slide has left it no longer overvalued.
The RBI governor told Mint that, after the depreciation, it is reasonable to conclude the currency has moved below fair value rather than above it.
The remarks signal the central bank sees the rupee's weakness as having materially changed its valuation picture, a view markets will watch for policy and intervention clues.
The rupee is in freefall. Is the central bank's 'wait and watch' strategy a masterstroke or a massive gamble?
India’s economy is booming, so why is its currency plummeting to historic lows against the dollar?