India’s rupee is currently “fundamentally undervalued,” according to the country’s chief economic adviser, who noted that its present levels could appeal to investors. In an interview on Thursday, V. Anantha Nageswaran said the currency offers an attractive entry point for those with a long-term investment horizon.

The rupee has come under pressure this week as Brent crude prices climbed above $100 per barrel. It has also surrendered much of the gains driven by recent central bank measures aimed at limiting speculative arbitrage, which had earlier pushed the currency to record lows. Ongoing tensions in West Asia have further strained key energy supplies. On Thursday, the rupee declined 0.3 percent to 94.1113 against the dollar.

So far in 2026, the rupee has been the worst-performing currency in Asia, continuing its downward trend from last year. The conflict in West Asia has weighed on the growth outlook of an economy heavily dependent on energy imports from the region. Additionally, significant foreign outflows from equities — which earlier this month exceeded last year’s record annual outflow of $18.79 billion — have added to the currency’s weakness.

Despite these challenges, officials remain relatively optimistic about economic growth. Reserve Bank of India Governor Sanjay Malhotra recently said he is “cautiously optimistic” that the economy will grow by 6.9 percent in the current financial year, even as some economists have trimmed their projections following the onset of the conflict.