Rupee Resilience: India's Currency Stability Amid Dollar Surge

Finance Minister Nirmala Sitharaman dismisses concerns about the Indian rupee's depreciation, attributing it to the US dollar's strength. She asserts that the rupee remains stable against other currencies due to robust macroeconomic fundamentals, despite recent declines increasing import costs.

In a recent interview with PTI, Finance Minister Nirmala Sitharaman addressed concerns about the Indian rupee's depreciation, attributing it primarily to the strengthening of the US dollar. Despite this challenge, she emphasized the rupee's relative stability compared to other currencies, bolstered by India's strong macroeconomic indicators.

The minister acknowledged that the rupee's 3% decline against the dollar over recent months poses economic challenges by making imports pricier. Yet, she dismissed criticism of the rupee's performance as misguided, underscoring its comparative steadiness amidst global currency fluctuations.

According to Sitharaman, the Reserve Bank has actively worked to maintain rupee stability, notably spending USD 77 billion from forex reserves to buffer against severe volatility. The current pressure on the rupee is attributed to factors such as a widening trade deficit and shifts in US Federal Reserve policies.

(With inputs from agencies.)