FPJ\u2008News Service\u00a0mumbai<\/p>\n
The Indian rupee\u2019s valuation versus other major currencies, calculated on a trade-weighted basis, has fallen to its \u200blowest in more than a decade, hit by the Iran war-driven surge in crude oil prices and chunky foreign portfolio outflows, Reuters reported.<\/p>\n
The South \u200bAsian currency\u2019s 40-currency real effective exchange rate, which accounts for \u2060inflation differentials between different economies, fell to 92.72, the Reserve Bank of India\u2019s latest bulletin released late on Thursday (April 23, 2026) showed.<\/p>\n
The REER is now hovering well below its long-run average of 98.25, pointing to a deeply undervalued rupee against historical norms.<\/p>\n
Relatively subdued inflation in India has weighed on the REER in recent months, adding to the \u200cimpact \u2060of the rupee\u2019s roughly 4.5% year-to-date decline, analysts said. The \u2060currency hit a record low of 95.21 per dollar in late March.<\/p>\n
Despite the extent of the rupee\u2019s undervaluation, analysts see little near-term scope for a recovery.<\/p>\n
While the rupee \u200bis highly undervalued on a REER basis relative to historical ranges, it is likely to remain under pressure in the near term due to dollar demand \u201cfrom ramp-up in oil imports to secure supplies and by sizeable equity outflows amid heightened risk aversion,\u201d analysts at BofA Global Research said in \u200ba note.<\/p>\n
The March reading caps a roughly 15-point decline from late-2024 highs, marking one of the sharpest real \u2060depreciations episodes in years.<\/p>\n
A weaker real-effective exchange rate helps make exports out of India more competitive, while increasing the cost of imports.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"FPJ\u2008News Service\u00a0mumbai The Indian rupee\u2019s valuation versus other major currencies, calculated on a trade-weighted basis, has fallen to…\n","protected":false},"author":2,"featured_media":397744,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,205470,205471,111,139,69,6835],"class_list":["post-397743","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-hits-decade","tag-low-valuation","tag-new-zealand","tag-newzealand","tag-nz","tag-rupee"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/397743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=397743"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/397743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/397744"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=397743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=397743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=397743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}