Amid rupee’s free fall against dollar, Sitharaman says it is ‘absolutely going fine’

New Delhi, Mar 30 (PTI) Finance Minister Nirmala Sitharaman on Monday said the country's economic fundamentals are strong, and compared to other emerging market economies, the Indian rupee is "absolutely going fine" against the US dollar.

Since the commencement of the West Asia conflict on February 28, 2026, the rupee has depreciated by 4.1 per cent to close at Rs 94.82 per USD on March 27, 2026.

Replying to a supplementary question in the Lok Sabha on rupee depreciation, Sitharaman said: "India's economy is strong, our fiscal situation is strong, and the entire world is praising our fiscal deficit management. Our forex reserves are solid.

"Compared to other emerging economies, the rupee is doing fine (theek chal raha hai)...Absolutely going fine." In a written reply, Sitharaman said the rupee depreciation is not specific to INR, as since the beginning of the West Asia conflict, major Asian currencies have also depreciated.

Certain peers, such as the South Korean Won, Thai Baht and Philippine Peso, have declined against the USD more than the rupee, by 4.6 per cent, 5.5 per cent and 4.8 per cent, respectively, she said.

Replying to the question, Minister of State for Finance Pankaj Chaudhary said that the value of the rupee is market-determined and is influenced by various factors.

"The government and the RBI are keeping a close watch on the value of the rupee," he said.

Chaudhary said inflation in India has eased, with the average retail inflation declining from 6.2 per cent in 2020-21 to 4.6 per cent in 2024-25 and further to 1.9 per cent in 2025-26 (April-February). Prices of most essential commodities have remained stable or exhibited a decreasing trend, he said.

The rupee (INR) depreciated 9.9 per cent against the US Dollar (USD) in the current fiscal (till March 27, 2026). PTI