In an exclusive interview with India Today, former Reserve Bank of India (RBI) Governor Duvvuri Subbarao said that the rupee’s depreciation is a matter of concern, but there is no need to get alarmed about it.
He further suggested that the central bank should allow the currency to find its market value rather than defending it at all costs, noting that a weaker currency could restrain oil demand and improve export competitiveness. While current economic fundamentals, including fiscal deficit levels and foreign exchange reserves, are stronger compared to the 2013 economic crisis, the global situation remains uncertain.
The Indian currency has experienced a significant depreciation against the dollar, reaching an intraday low of 95.80 and closing at 95.71.