From The Economic Times · Atmadip Ray · · 1m 20s
RBI Ensures Rupee Finds Correct Value
RBI targets correct rupee value after currency hits five-month low.
In brief
RBI targets correct rupee value after currency hits five-month low. RBI will ensure the rupee stabilizes at its correct level despite falling to a five-month low of 96.8450 per dollar. Originally reported by The Economic Times.
RBI Targets Rupee Value
The Reserve Bank of India said it will ensure the 'undervalued' rupee finds its correct level even as the currency slipped to a five-month low of 96.8450 a dollar.
“We will ensure the rupee stabilises and finds its correct value. We will support the rupee's orderly movement”
Rupee at Five-Month Low
The rupee ended at 96.7750, 0.4% down from the previous close of 96.42, having lost 7% so far this year.
RBI Raises Policy Rate
The central bank raised the policy rate 25 basis points in the first hardening since February 2023, bumping up both FY27 inflation and growth projections.
Governor Says Rupee Undervalued
Governor Sanjay Malhotra stated the rupee is undervalued in terms of real effective exchange rate and that the market could be irrational in the short run.
Foreign Capital Pressures Rupee
Persistent outflows of foreign capital from indian markets kept the rupee under pressure despite higher interest rates.
RBI Intervenes in Forex Market
The central bank intervened to cap the rupee's fall through dollar-rupee sell-buy swaps, pushing the one-year forward up to 3.82%.
The one thing
RBI will ensure the rupee stabilizes at its correct level despite falling to a five-month low of 96.8450 per dollar.
