The rupee is no longer overvalued: Why this may help India

6 min readNew DelhiJul 28, 2026 07:46 PM IST Simply put, the rupee has moved from being an overvalued currency — the REER, in fact, ruled above 100 till July 2025 — to an undervalued currency. (Express photo by Amit Chakravarty) The hardening of global oil prices, following the resumption of hostilities between the US and Iran, saw the rupee breach the 96-to-the-dollar mark afresh on July 14 and remain at those levels till Friday (July 24). The pause in daily strikes since has led to the domestic currency strengthening to around 95.9, even as Brent crude prices have eased to below $85 per barrel after surging past $95 on July 23.Amid these spikes and drops — the rupee hit an all-time-low of 96.96-to-the-dollar on May 20 and Brent crossed $126.4 per barrel on April 30 — one thing is clear: