Rupee not overvalued, may be undervalued

‘Rupee not overvalued, may be undervalued’: Reserve Bank of India Governor Sanjay Malhotra on Wednesday said the rupee may be undervalued and assured that the central bank would support an orderly movement of the currency while ensuring there was no excessive volatility.

“We will ensure that the rupee stabilises, that the rupee finds its correct value,” Malhotra told reporters, responding to a question on the currency nearing its all-time low of 96.96 against the dollar during intraday trading.

The rupee has remained under pressure this year, particularly since the escalation of the West Asia conflict in late February. Higher crude oil prices have added to pressure on the currency, given India’s dependence on imported oil.