Rupee's real effective exchange rate remains near 12-yr low, at 94.76 in Jan
This story was originally published at 18:43 IST on 20 February 2026
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MUMBAI – The rupee's real effective exchange rate index, based on a basket of 40 currencies in terms of trade-based weights, remained at a near 12-year low of 94.76 in January from 95.14 in December, according to data released by the Reserve Bank of India Friday. The print indicates the Indian currency is undervalued by over 5%.
The rupee fell over 2.3% against the dollar in January owing to a strong foreign portfolio outflows and a prolonged delay in a trade deal between India and the US. The dollar index, which measures the strength in the dollar against six major currencies, fell over 2% last month.
"In real effective terms, the Indian rupee depreciated in January as depreciation of the INR in nominal effective terms more than offset higher prices in India vis-a-vis its major trading partners," the RBI staff said in the state of the economy article.
The 40-currency basket includes currencies of Angola, Australia, Bangladesh, Brazil, Canada, Chile, China, Egypt, the European Union, Ghana, Hong Kong, Indonesia, Iran, Iraq, Israel, Japan, Kenya, Kuwait, Malaysia, Mexico, Nepal, Nigeria, Oman, Qatar, Russia, South Korea, Saudi Arabia, Singapore, South Africa, Sri Lanka, Switzerland, Taiwan, Tanzania, Thailand, Turkey, Ukraine, the United Arab Emirates, the UK, the US, and Vietnam. End
US$1 = INR 90.98
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Kabir Sharma
Edited by Akul Nishant Akhoury
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