{"id":292725,"date":"2026-10-07T15:26:12","date_gmt":"2026-10-07T09:56:12","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=292725"},"modified":"2026-10-07T15:26:12","modified_gmt":"2026-10-07T09:56:12","slug":"rupee-undervalued-rbi-governor-malhotra-stability-rupee-97-dollar-impact","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/rupee-undervalued-rbi-governor-malhotra-stability-rupee-97-dollar-impact\/","title":{"rendered":"Rupee Undervalued, RBI Governor Says, Even as He Promises Stability: What Sanjay Malhotra Said on 7 October, Why the Rupee Hit 97 Against the Dollar, the RBI’s Tools and What It Means for Importers, Exporters and Investors"},"content":{"rendered":"

7 Oct: Governor says rupee may be undervalued per REER. Rupee hit 97.15, lowest since 20 May. RBI to ensure stability, no excessive volatility. Repo hiked to 5.50%.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

Rupee undervalued was the message from RBI Governor Sanjay Malhotra on 7 October, when he said that by a number of estimates, including the real effective exchange rate, the rupee is not overvalued and may be undervalued, while promising that the RBI will ensure it stabilises and finds its correct value. He added that the RBI will support an orderly movement and prevent excessive volatility, and that markets can be irrational in the short term but reflect value over time, even as the rupee weakened to 97.15 against the dollar, its lowest since 20 May 2026, after opening near 96.57. The pressure comes from the West Asia conflict, oil near $100, record foreign equity selling and strong dollar demand, and the RBI has used a concessional swap window for FCNR(B) deposits and bond issuances plus a 25 bps rate hike to 5.50%. The Governor’s comments do not set a rate, so importers, travellers and borrowers should plan for volatility while exporters gain.<\/p>\n<\/p><\/div>\n

Rupee undervalued is a rare phrase from a central bank that normally avoids comment on the level, and it follows a similar remark by Deputy Governor Poonam Gupta on 24 September that there is a case for the rupee to stabilise and appreciate. The currency has lost about 9% against the dollar since November 2025, when it traded near 88.7.<\/p>\n

If you want to know what the Governor said and what it means, this article covers the rupee undervalued remarks, the rupee vs dollar move from 96.57 to 97.15, why it is weak with oil and dollar demand, what REER says, the tools the RBI governor is using including the FCNR(B) swap window and volatility control, who gains, such as TCS and other exporters, and who loses, scenarios and what to watch.<\/p>\n

Click Here – Get Free Investment Predictions<\/a><\/strong><\/p>\n

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