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RBI Chief Says Rupee May Have Swung Too Far as Oil Pressures Currency

India's rupee may have weakened beyond its fundamental value, Reserve Bank of India Governor Sanjay Malhotra said, as the central bank grapples with currency stability amid global energy cost pressures. The rupee has traded at record lows recently, driven by elevated crude prices linked to Middle Eastern tensions. The RBI is weighing multiple policy tools to stabilize the currency, including potential interest rate increases, expanded currency swap programs, and measures to attract overseas investment. Officials have signaled willingness to raise domestic fuel prices if oil remains elevated, reflecting concerns about import costs straining the economy. The central bank's recent interventions underscore its commitment to preventing further depreciation, though some analysts argue the monetary authority should temper its market-support operations.