{
  "id": 16727970,
  "title": "India should not deplete reserves to defend rupee, former RBI chief Rajan says",
  "url": "https://urgent.news/2026/10/27/india-should-not-deplete-reserves-to-defend-rupee-former-rbi-chief",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-27T08:44:29.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/forex/india-should-not-deplete-reserves-to-defend-rupee-former-rbi-chief-rajan-says/article71630313.ece"
  },
  "original_language": "en",
  "account": "Former Reserve Bank of India Governor Raghuram Rajan warned against depleting foreign exchange reserves to defend the weakening rupee in a recent interview. The rupee has lost approximately 6% of its value in 2026, making it the second-worst performing currency in Asia, with a record low of 96.96 in May. Rajan emphasized the importance of not panicking and advised against rushing to use the limited reserves. He highlighted that high oil prices, rising US Treasury yields, and continued foreign equity outflows have forced the central bank to intensify intervention to mitigate risks to inflation and financial stability. Rajan suggested a more measured approach, examining whether the current situation is an outlier compared to past occurrences and considering the potential benefits of a modest currency depreciation for exports and competitiveness.",
  "summary": "‘Some currency depreciation is not necessarily a bad thing in this kind of environment. It allows you to stabilise your exports (and) makes your goods more competitive’: Raghuram Rajan",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}