The Deputy Governor of the Reserve Bank of India believes there is room for the Indian rupee to appreciate.

Reserve Bank of India Deputy Governor Poonam Gupta said the Indian rupee still has room to appreciate from current levels. She expressed optimism about the currency's outlook after a period of weakness. Speaking at the State Bank of India Banking and Economics Conference in Mumbai, Gupta noted: "If anything, the rupee is not only expected to stabilize but may even appreciate further from current levels, which is in line with what market analysts expected when the capital flow measures were first announced." On Thursday, the rupee weakened slightly to 95.8537 as global bond yields surged. Traders said the central bank may have sold dollars, thereby limiting the rupee's decline. Over the past month, to counter pressure from elevated oil prices, the RBI has regularly intervened to support the local currency.