RBI governor pledges to support the rupee’s orderly movement

The Economic Times reports that RBI Governor Sanjay Malhotra called the rupee undervalued in real effective exchange-rate terms and pledged to support its orderly movement. The currency touched a five-month low of 96.8450 per dollar on October 7, the day the central bank raised its policy rate by 25 basis points. Bank of Baroda economist Madan Sabnavis said a stronger dollar and foreign investment withdrawals were likely factors in the rupee’s weakness.