Markets can be irrational in the short run: What RBI Governor Sanjay Malhotra said as rupee nears lifetime low

The RBI Governor Sanjay Malhotra has stated that markets can be irrational in the short run. This means that the current state of the market may not reflect the true value of the rupee, which is nearing its lifetime low. The RBI's decision to raise the repo rate to 5.50% has led to concerns about the currency's value, but Governor Malhotra's comments suggest that the rupee may actually be undervalued, which could have a positive impact on its value in the long run.

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The RBI Governor said the currency may be undervalued. This could lead to a potential rebound in the rupee's value, affecting markets and investor sentiment.

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