Nirmala Sitharaman, the minister of finance, stated on Saturday that the rupee has “held back extremely well” in comparison to other currencies against the US Dollar.
After the native currency hit a record low against the dollar, the finance minister assured reporters that the Reserve Bank and the Finance Ministry were keeping a careful eye on the situation.
“The Indian rupee is the only currency that has maintained its value and has not experienced as much fluctuation or volatility as other currencies. We have held back very well,” she told reporters here on the final day of her three-day visit to Pune district which is a stronghold of NCP chief Sharad Pawar.
In addition, she instructed a writer to conduct research on how other currencies are faring against the US dollar during the most recent bout of decline.
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.
As a result of the strong US dollar abroad and investors’ risk-off attitude, the rupee fell 30 paise to close at a new lifetime low of 81.09 against the US dollar on Friday.
The rupee dropped 83 paise on Thursday, its worst one-day loss in over seven months, to settle at 80.79, a record low.
The RBI has been using its dollar reserves to protect the currency and has used up billions of dollars worth of foreign exchange resources in the process.
Additional incentives and other measures to stop the decline have also been taken as part of the policy to try and entice more deposits from the diaspora.