Nirmala Sitharaman commented at a press briefing that the rupee has performed much better than other emerging market currencies and she would not look at it as the rupee sliding but as the dollar strengthening.
Finance Minister Nirmala Sitharaman today commenting on the performance said that the rupee has performed much better than other emerging market currencies and she would not look at it as the rupee sliding but as the dollar strengthening. This remark by the minister came after the rupee fell to an all-time low of 82.69 during trade on Monday this week.
Sitharaman at a press briefing during her US visit was replying to a question from news agency ANI when she replied, "Dollar is strengthening incessantly. So obviously, all other currencies are performing against the strengthening dollar. I am not talking about technicalities but it is a matter of fact India's rupee probably has withstood this dollar rate going up...I think the Indian rupee has performed much better than many other emerging market currencies."
"I will look at it, not Rupee sliding and look at it as dollar strengthening incessantly," the finance minister added.
She also said that the Reserve Bank of India was not intervening in the market to fix the value of the Indian currency and was focused on ensuring that there isn't too much volatility.
"The efforts of RBI are more towards seeing that there is not too much volatility, it is not to intervene in the market to fix the value of the rupee. Containing the volatility is the only exercise RBI is involved in and I have said this before that the rupee will find its level," she said.
If experts are to believe, the latest round of depreciation is triggered by adverse global developments like the Russian invasion of Ukraine earlier this year. The war has pushed up commodity prices and has led to a record surge in inflation in the developed world.