The Rupee’s overvaluation, as indicated by a record-high REER in November 2024, has been largely corrected, with the current REER estimated near 98.5. This deliberate weakening, aided by RBI’s strategic moves, aligns with broader monetary easing. While near-term risks from crude prices and geopolitical tensions persist, the Rupee is expected to stabilise and track the Yuan more closely ahead.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets