Rupee plunges to new low, some see signs of undervaluation against EM peers

Simply put, even though the rupee looks weak against the dollar, REER shows the bigger picture of how competitive India really is in global trade. If REER indicates undervaluation, it means Indian goods are relatively cheaper compared to goods from other countries, which can boost exports. So, the key point is, the rupee may seem weak in isolation, but on a trade-weighted, inflation-adjusted basis, it could actually be helping India stay competitive globally.