The rupee, which slipped from 87.85 to 88.72 against dollar between Aug and Oct 2025 and now to 90.41 in Dec, remains fundamentally undervalued even as other emerging market countries register currency gains. The undervaluation reflects the manner in which foreign capital outflows continue to influence the rupee rather than a decline in domestic fundamentals. "The Indian economy continues to power on. Growth is at 8.2% even in Q2, beating all estimates. We have seen the lowest-ever inflation in the last few months. Foreign exchange reserves continue to be strong. Capital inflows and investments in infrastructure, consumer spending, all the levers of the economy have demonstrated a great deal of positivity," Union Commerce Minister Piyush Goyal said When asked about Rupee depreciation again

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