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RBI Governor: Rupee Undervalued, Central Bank Will Intervene
✍️ TOI India
🗓 08 Oct 2026, 08:47 AM
👁 19
RBI Governor Sanjay Malhotra stated that the rupee is undervalued and the central bank is prepared to intervene. The currency hit a five-month low of 96.78 against the dollar.
Reserve Bank of India (RBI) Governor Sanjay Malhotra has indicated that the Indian rupee is currently undervalued. He clarified that while markets can sometimes exhibit irrational behavior, the central bank remains committed to maintaining stability and is prepared to intervene in the currency market as necessary.
The rupee recently closed at 96.78 per US dollar, marking a decline of 36 paise from the previous trading session. This movement pushed the currency to a five-month low, reflecting recent pressures in the foreign exchange market.
Addressing global economic trends, Governor Malhotra suggested that ongoing corrections in global artificial intelligence stocks could potentially attract foreign capital to India. This shift might help stabilize domestic markets and support the currency.
Despite a robust surplus in the services trade sector, the country's current account deficit has widened. This increase is primarily attributed to a growing merchandise trade deficit, which continues to impact the overall balance of payments.
The rupee recently closed at 96.78 per US dollar, marking a decline of 36 paise from the previous trading session. This movement pushed the currency to a five-month low, reflecting recent pressures in the foreign exchange market.
Addressing global economic trends, Governor Malhotra suggested that ongoing corrections in global artificial intelligence stocks could potentially attract foreign capital to India. This shift might help stabilize domestic markets and support the currency.
Despite a robust surplus in the services trade sector, the country's current account deficit has widened. This increase is primarily attributed to a growing merchandise trade deficit, which continues to impact the overall balance of payments.