Rupee relatively better placed than other global currencies: FM

Amid the rupee declining against the US dollar, Finance Minister Nirmala Sitharaman on Thursday (June 30) said the Indian currency is relatively better placed than other global currencies against the greenback.

Emerging market currencies have been falling against dollar amid geopolitical tensions in the wake of the Russia-Ukraine war, concerns over growth, high global crude prices, sustained inflation and central banks worldwide adopting hawkish monetary policy approach.

“We are relatively better placed. We are not a closed economy. We are part of the globalized world. So, we will be impacted (by global developments),” the finance minister said on the sidelines of an event in New Delhi.

Also Read: Rupee rises 13 paise to 78.90 against US dollar in early trade

She was responding to a question on the movement of rupee against the dollar. The rupee breached the psychologically significant level of 79 per dollar level for the first time ever on Wednesday (June 29), and has also hit a series of lifetime lows this month.

However, on Thursday, the domestic currency rose 13 paise to 78.90 against the US dollar in early trade.

Since the war in Ukraine broke out in late February, the Reserve Bank of India (RBI) has expended its foreign exchange reserves in order to shield the rupee from steep depreciation. Since February 25, the headline foreign exchange reserves have declined by USD 40.94 billion.

Also Read: Rupee gains 6 paise against US dollar in early trade

Last week, Reserve Bank Deputy Governor, Michael D Patra said the central bank will not allow “jerky movements” of the rupee and stressed that the Indian currency has witnessed least depreciation in recent times.

“We will stand for its stability and we are doing it. We are there in the market and we will not allow disorderly movement of the rupee. We have no level in mind, but we will not allow jerky movement. That is for certain,” Patra had said.

Also Read: Rupee settles at record low of 78.32 against dollar on forex outflows

(With inputs from agencies)