RBI Governor Says Rupee May Be Undervalued Amid Crude Volatility & Forex Market Pressure

The Indian rupee is under pressure amid rising crude oil volatility and global uncertainty. But RBI Governor Sanjay Malhotra has now made a big statement — saying the rupee may actually be “undervalued” after its recent fall. The rupee has depreciated nearly 6% this year, higher than its usual annual average decline. The RBI has clarified that it is not targeting any fixed exchange rate, but will continue to step in during excessive speculation and volatility. The central bank has also expressed confidence in India’s massive $700 billion forex reserves, especially after the record RBI surplus transfer to the government.