Raghuram Rajan urges India not to defend the rupee at any cost
In short
Raghuram Rajan said India should not spend too much to protect the rupee from falling. The Mint summary says he was speaking about the RBI and exchange-rate policy, and that broader economic forces are pushing the currency down.
This matters because it affects how the central bank may use its resources and how markets view the rupee. The reporting does not say what the RBI will decide next.
What the reporting says
Raghuram Rajan argued that India should resist spending excessive resources to defend the rupee when broader economic conditions are pushing it lower. The Mint summary says he is not calling for the RBI to ignore the currency’s decline, but to avoid committing too much to a fixed exchange rate. The immediate consequence is a policy debate over how far the central bank should go; the source does not say what the RBI will do next.
Why it matters
Raghuram Rajan, in a Mint-summarized commentary, said India should avoid using excessive resources to defend the rupee at a chosen level when broader economic conditions are pushing the currency lower. The piece says he is not arguing that the RBI should ignore the rupee’s decline. The immediate issue is how aggressively policymakers should respond, but the reporting does not state any new RBI action or decision.