Rupee Surges 66 Paise as RBI Governor Says Currency May Be Undervalued

The Indian rupee saw a significant gain on Monday, rising by 66 paise to 95.91 against the US dollar. This increase followed comments from RBI Governor Sanjay Malhotra, who suggested that the currency may be undervalued.

Malhotra's remarks were noted by market participants, who pointed out that public sector banks were active in the currency market - a signal of potential central bank intervention to manage volatility. This combined with lower global crude oil prices, which fell nearly 10% to below $88 per barrel, helped the rupee see an intraday jump of up to 76 paise before settling at its close.

The decline in oil prices was attributed to easing geopolitical tensions, which reduced the demand for US dollars and subsequently stabilized the rupee. The RBI also highlighted India's strong foreign exchange position, noting that banks have successfully mobilized nearly $32 billion through foreign currency non-resident deposits.