RBI Governor Sanjay Malhotra Labels Indian Rupee Undervalued

RBI Governor Sanjay Malhotra stated on July 26 that the Indian rupee is currently undervalued in both nominal and real effective exchange rate (REER) terms.

The central bank chief's rare public comment on currency valuation comes as the rupee faces pressure from elevated global crude oil prices, geopolitical tensions, and capital outflows from emerging markets.

Malhotra reiterated that it is reasonable to conclude the currency is not overvalued, marking a departure from the typical reluctance of central bankers to discuss specific currency pricing levels.