New Delhi: India’s rupee is “fundamentally undervalued,” the country’s chief economic adviser said, adding that current levels could draw investors.
“For long-term investors, the rupee’s current valuation provides an attractive entry point,” V. Anantha Nageswaran said in an interview Thursday.
The rupee has been under pressure this week, with Brent above $100 a barrel. The currency has given up much of the gains fueled by the central bank’s recent measures to curb speculative arbitrage bets that had pushed the rupee to record lows last month, as tensions in the Middle East kept vital energy supplies constrained. It fell 0.3% to 94.1113 per dollar on Thursday.
The rupee is Asia’s worst-performing currency so far in 2026, extending last year’s decline, as the Middle East conflict clouds growth outlook for a country heavily reliant on energy imports from the region. Large foreign outflows from equities — which at one point early this month surpassed last year’s record $18.79 billion annual exit — have worsened the currency’s slide.
Despite the rising uncertainty, government officials have maintained a relatively upbeat growth outlook. Reserve Bank of India Governor Sanjay Malhotra said this month he is “cautiously optimistic” growth will reach 6.9% in the current financial year, even as some economists have lowered their forecast since the war began.