India should let rupee find its own level: Uday Kotak calls for focus on competitiveness, innovation

Indian rupee should be allowed to find its own level, Uday Kotak, Founder & Director, Kotak Mahindra Bank said on Tuesday, asserting that the underlying strength of the Indian economy will reflect in the currency over time.

Speaking at theBloomberg New Economy Forum 2026, he said, "My personal view is we should let the rupee find its own level, and over time, the true strength of the economy will play out."

The billionaire also emphasised the importance of allowing market forces to determine currency levels without creating expectations about a particular rate that policymakers might seek to defend.


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Kotak said the situation should serve as an important signal for India to strengthen its competitiveness, improve efficiency and self-reliance, and invest more in research and innovation.

A market practitioner, Kotak said, understands what works in financial markets. "Keeping investors uncertain about the level policymakers may be trying to justify can help prevent markets from anticipating official interventions."

"My view is a practitioner has the ability of speaking what is going to be effective in markets," he said, adding that policymakers should avoid giving markets a specific level to speculate on.

The recent pressure on the rupee was driven more by portfolio investment outflows than by the current account. The Reserve Bank of India (RBI) over the weekend announced a slew of measures to stem rupee fall.

In a latest move, the central bank announced the creation of a special window for oil marketing companies, which is set to take the dollar demand away from the spot market and tightened rules governing forex derivatives trades to curb speculative bets against the rupee.

Following the RBI measures, the Indian rupee strengthened for the third straight session on Tuesday and appreciated 40 paise to close at 95.38 (provisional) against the US dollar.


(With inputs from agencies)