RBI to stabilize undervalued rupee at correct level, says Governor

The Reserve Bank of India has stated its commitment to stabilizing the rupee, which has weakened to a five-month low. Despite the central bank raising its policy rate for the first time since February 2023, the rupee has come under pressure due to sustained foreign capital outflows.

Economists attribute the rupee's depreciation partly to a stronger dollar index in global markets. The RBI has undertaken interventions including dollar-rupee swaps to manage liquidity and support the currency.