May 25: Economist Arvind Panagariya has said that the Indian rupee is expected to recover as global uncertainties subside, urging stakeholders not to panic over the currency touching the ₹100-per-dollar level.
He noted that short-term pressure on the rupee is largely driven by external factors such as global market volatility, interest rate movements in advanced economies, and geopolitical tensions. According to him, these conditions tend to create temporary fluctuations in exchange rates.
Panagariya emphasized that India’s long-term economic fundamentals remain stable, supported by strong domestic demand, improving investment flows, and steady growth prospects. He added that once external pressures ease, the rupee is likely to stabilise and recover from current levels.
He further advised against overreacting to short-term currency movements, stating that exchange rate fluctuations are a normal part of a dynamic global financial system.