Rajan says India should not use reserves to defend rupee
In short
Raghuram Rajan said India should not spend down its reserves to support the rupee. The rupee has fallen about 6% in 2026 and hit a record low of 96.96 in May.
This matters because a weaker rupee can affect trade, inflation and markets. The reporting does not say whether the RBI will step in more or less.
What the reporting says
Raghuram Rajan said India should not deplete reserves to defend the rupee, after the currency fell about 6% in 2026 and hit a record low of 96.96 in May. The summary says the rupee is the second-worst performing currency in Asia so far this year. The immediate policy debate is whether authorities should intervene more, but the reporting does not state any new RBI action.
Why it matters
Raghuram Rajan argued that India should not deplete reserves to defend the rupee as the currency has lost about 6% so far in 2026 and touched a record low of 96.96 in May. The summary says the rupee is the second-worst performing currency in Asia this year. The market implication is ongoing pressure on the currency, but no new central-bank decision was reported.