The Economic Times

Rupee is undervalued, not unmoored: RBI must ride out global market turbulence

The rupees weakness reflects global capital-flow turbulence rather than a deterioration in Indias economic fundamentals, with its inflation-adjusted value at levels last seen during the 2013-14 taper tantrum. RBI must contain volatility without defending a particular exchange-rate level, while higher interest rates and inflation control help restore investor confidence.