Rupee's Descent: No Panic, Strategic Patience Advised

Axis Bank's chief economist Neelkanth Mishra suggests that the rupee's depreciation is not a cause for panic, despite breaches to historic lows. He emphasizes strategic patience, urging the Reserve Bank of India not to fixate on specific currency levels, and highlights the positive outlook for India's economic growth.

On Tuesday, Axis Bank's chief economist, Neelkanth Mishra, addressed concerns over the rupee's depreciation, stressing that there is no need for panic as the currency breached a historic low.

Mishra, participating as a part-time member of the Economic Advisory Council to the Prime Minister, advised against the RBI targeting a particular rupee level in its interventions, suggesting that such practices have historically been problematic.

The rupee's decline is attributed to speculative challenges amid stable fundamentals, with Mishra optimistic about India's economic growth prospects, expecting it to rise to 7.5% by FY27, supported by substantial foreign investments and infrastructural expansions.

(With inputs from agencies.)