India’s rupee has the potential to strengthen from its current levels following a period of weakness, Reserve Bank of India Deputy Governor Poonam Gupta said Wednesday.
Speaking at the State Bank of India’s banking and economics conclave in Mumbai, Gupta said there was a reasonable case for the currency not only to stabilize but potentially appreciate.
Her comments come as markets assess the outlook for the rupee following recent measures aimed at influencing capital flows. Gupta noted that market analysts had anticipated the possibility of currency appreciation when those measures were initially announced.
The remarks signal a relatively positive assessment from a senior RBI official about the rupee’s prospects after its recent weakness, with capital flows remaining an important factor in determining the currency’s direction.
