India's Rupee Is Holding Up Better Than Feared, Says Former RBI Chief Rajan
Speakers
Raghuram Rajan
— Former Governor of the Reserve Bank of India / Professor of Finance
Haslinda Amin
— Anchor, Bloomberg Television
Summary
Former RBI Governor Raghuram Rajan says India's rupee has not depreciated as sharply as feared and the situation is not a panic, contrasting current pressure with the 2013 taper tantrum. He argues the RBI's recent FX intervention should not be judged absent a counterfactual, and that policy should focus on lifting India's growth rate rather than overreacting on the currency.
- Rajan says rupee depreciation is mild versus the 2013 taper tantrum's roughly 25% nominal fall.
- Current portfolio outflows caused some depreciation but no crisis of confidence.
- The RBI's recent FX support is a one-off measure whose counterfactual is unknown.
- Rajan would not panic or seek emergency currency stabilization if he were RBI governor today.
- He urges focus on structural growth measures for India.
- He says some growth-supporting measures are happening but more are needed.
Ideas
Rupee not in crisis; no panic.
Rajan argues India's rupee depreciation is far milder than the 2013 taper tantrum episode, when the currency fell roughly 25%; current portfolio outflows have caused some depreciation but not a crisis of confidence, so there is no need for RBI panic or emergency stabilization.
Up Next
This Bloomberg Markets video, published August 28, 2026, features Raghuram Rajan discussing Indian rupee. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Raghuram Rajan · Tickers: Indian rupee