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Sanjay Malhotra also said the central bank would ensure the rupee stabilised and moved in an orderly manner, as it neared record lows. India's rupee fell to 96.8450 per dollar on Wednesday, nearing its record low of 96.96 hit in May.
India's central bank governor stated that financial markets can exhibit irrational behavior in the short term and that various indicators suggest the rupee may be undervalued over the long run.