RBI says it will ensure 'undervalued' Rupee finds its correct level

The Reserve Bank of India has stated its intent to stabilize the undervalued rupee, which reached a five-month low. Despite raising the policy rate for the first time since February 2023, the rupee has fallen due to foreign capital outflows. According to economists, the stronger dollar index contributes to the rupee's pressure in the market. Interventions by the central bank included dollar-rupee swaps to manage liquidity effectively.