RBI Governor: Rupee Weakness Normal, Economy Strong Despite Depreciation

• RBI Governor Sanjay Malhotra states rupee depreciation is within historical patterns, not a major concern for the Indian economy.
• Rupee has weakened ~3-3.4% annually over the last two decades, hitting a record low of 91.16 against USD on Dec 16, 2025.
• Weakness attributed to a stronger US dollar, foreign outflows, and trade deal uncertainty; it's the worst-performing Asian currency YTD.
• RBI intervenes only to curb excessive volatility, allowing market forces to determine the rupee's level.
• India's external sector is strong with a narrowed trade deficit, improved exports, 11 months of import cover, and $690 billion in forex reserves against $750 billion external debt.

Why It Matters: RBI assures strong macroeconomic buffers can absorb rupee pressure, maintaining economic stability.