New Delhi: Amid depreciating rupee against the US dollar, Finance Minister Nirmala Sitharaman on Thursday said the Indian currency is relatively better off the greenback than other global currencies.
Emerging market currencies are falling against the dollar amid geopolitical tensions in the wake of the Russo-Ukraine war, concerns over growth, high global crude oil prices, sustained inflation and a tough monetary policy approach by central banks across the world.
“We are in a relatively better position. We are not a closed economy. We are part of a globalized world. Therefore, we will be affected (by global development),” the finance minister said on the sidelines of an event here.
She was replying to a question on the movement of the rupee against the dollar.
The rupee on Wednesday crossed the psychologically important $79 a dollar level for the first time and has hit a lifetime low this month.
However, in early trade on Thursday, the domestic currency rose by 13 paise to 78.90 against the US dollar.
Since the war broke out in Ukraine in late February, the Reserve Bank of India (RBI) has spent its foreign exchange reserves to protect the rupee from sharp depreciation. Headline forex reserves have declined by $40.94 billion since February 25.
Last week, the Reserve Bank’s deputy governor, Michael D Patra, said the central bank would not allow “jerky movements” of the rupee and stressed that the Indian currency has seen its lowest depreciation in recent days.
“We will stand for its stability and we are doing this. We are in the market and we will not allow disorderly movement of rupee. We have no level in mind, but we will not allow jerky movement. That is certain. ,” Patra said.
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