Nirmala Sitharaman attributed the decline on the strengthening of the currency. The rupee, according to her, is not losing strength.
The rupee has performed significantly better than other currencies from emerging markets, according to Finance Minister Nirmala Sitharaman. A few days after the rupee hit an all-time low of 82.69, the minister made his comment.Ms. Sitharaman attributed the decline to the strengthening of the dollar. The rupee, according to her, is not losing strength.
The finance minister stated, “I will look at it, not Rupee dropping and look at it as dollar strengthening continually,” during a press conference while visiting the US.
She said that the Reserve Bank of India (RBI) was not interfering in the market to fix the value of the Indian rupee, but rather was concerned with preventing excessive volatility.When asked about steps being done to stop the drop, she told that it is apparent that all other currencies are doing poorly relative to the USD’s strength.
It is a truth that the Indian Rupee has likely remained stable as USD exchange rates have increased in favour of the USD. When compared to other developing market currencies, the Indian rupee has performed substantially better.
“The RBI’s efforts are focused more on preventing excessive volatility than on intervening in the market to fix the value of the rupee. The sole activity the RBI engages in is volatility containment, and as I have previously stated, the rupee will find its level “She spoke.
Experts claim that negative global events, beginning with the geopolitical tensions brought on by Russia’s invasion of Ukraine earlier this year, are to blame for the most recent round of depreciation.
The conflict increased commodity prices, which caused a record-breaking rise in inflation in the developed countries and forced the US Fed to raise interest rates dramatically. This has caused capital to return to the US, which has led to instances of currency devaluation.