Rupee May Not Just Stabilise, but Appreciate From Current Levels: RBI Dy Guv Poonam Gupta
Poonam Gupta said strong services exports, remittances and capital inflows could help reverse the rupee’s 13.1% slide.
- On Wednesday, RBI Deputy Governor Poonam Gupta said the Indian rupee could stabilize or even appreciate from current levels, describing the currency's 13.1 per cent depreciation over the past year and a half as a temporary overcorrection.
- Addressing the 13th SBI Banking & Economics Conclave in Mumbai, Gupta analyzed the cumulative depreciation between March 31, 2025, and September 16, 2026. She characterized this period's currency movement as an overcorrection reflecting temporary external pressures.
- India recorded a negative BOP of USD 5 billion in 2024-25 and USD 23.6 billion in 2025-26, yet services exports and remittances remain resilient, keeping the CAD below 1 per cent of GDP.
- Special capital flow measures implemented in June resulted in a meaningful BOP surplus this year, Gupta noted, reflecting India's unique ability to attract large inflows at a small country premium.
- The CAD should shrink further in coming years, supported by declining oil dependence and emerging merchandise export strengths. Eventual inclusion of Indian bonds in global indices could further accelerate capital flows into India.
14 Articles
14 Articles
Rupee may appreciate as balance of payments outlook improves: RBI DG Gupta
The rupee may stabilize and appreciate as India’s balance of payments improves with narrowing current account deficit, stronger capital inflows, and robust economic fundamentals, says RBI Deputy Governor Poonam Gupta.
The Economic Times
Times of IndiaRupee may not just stabilise, but appreciate from current levels: RBI Dy Guv Poonam Gupta
RBI Deputy Governor Poonam Gupta mentioned the rupee could stabilize or appreciate after its recent depreciation. She highlighted India's potential to reduce the current account deficit through services exports and remittances. Gupta noted that capital account conditions may improve, supporting foreign investments. She emphasized the RBI's capacity to manage external pressures and maintain orderly exchange rates. The overall outlook indicates a …
Rupee Depreciation of 13.1% Is Temporary and Currency May Soon Appreciate: RBI Deputy Governor Poonam Gupta
The Indian rupee's cumulative depreciation of 13.1 per cent over the past year and a half could prove to be temporary, with the currency potentially stabilising and even appreciating from current levels as India's external position strengthens, Reserve Bank of India Deputy Governor Poonam Gupta has said. Rupee Depreciation of 13.1% Is Temporary and Currency May Soon Appreciate: RBI Deputy Governor Poonam Gupta.
There seems to be a fair case for the Rupee to not just stabilise but perhaps even appreciate from the current levels: RBI Deputy Governor Poonam Gupta
RBI Deputy Governor Poonam Gupta suggests the Indian Rupee may stabilize and appreciate due to declining oil dependence and favorable economic conditions.
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