Rupee undervalued, RBI governor says, even as he promises stability against dollar

What happened: RBI Governor Sanjay Malhotra said the rupee may be undervalued by many estimates, including the REER, and said the RBI will support it in finding its correct value without excessive volatility, as the rupee moved toward an all-time low against the dollar. Key numbers: Banks mobilised nearly $133 billion under the FCNR(B) deposits facility. Why it matters: The RBI's stated aim is to stabilise the rupee and allow orderly movement, after swap facilities and diaspora deposit inflows eased pressure only briefly and the currency weakened again in recent sessions.

RBI Governor Sanjay Malhotra said the rupee may be undervalued by many estimates, including the REER, and said the RBI will support it in finding its correct value without excessive volatility, as the rupee moved toward an all-time low against the dollar.

The RBI's stated aim is to stabilise the rupee and allow orderly movement, after swap facilities and diaspora deposit inflows eased pressure only briefly and the currency weakened again in recent sessions.