# RBI Ensures Rupee Finds Correct Value

> RBI targets correct rupee value after currency hits five-month low.
- Title: RBI Ensures Rupee Finds Correct Value · The Economic Times
- Summary: 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…
- Keywords: rbi, rupee, policy rate, foreign capital, forex market, bank of baroda, money, business, Ensures, Finds, Correct, Value
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/forex/forex-news/rbi-says-it-will-ensure-undervalued-rupee-finds-its-correct-level/articleshow/134770024.cms
- Author: Atmadip Ray
- Published: 2026-10-07T16:06:00+00:00
- Read time: 1 min
- Topics: rbi, rupee, policy rate, foreign capital, forex market, bank of baroda, money, business
## 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%.
## Key takeaway

RBI will ensure the rupee stabilizes at its correct level despite falling to a five-month low of 96.8450 per dollar.