Amid the rupee declining in opposition to the US greenback, Finance Minister Nirmala Sitharaman on Thursday mentioned the Indian forex is comparatively higher positioned than different world currencies in opposition to the buck.
Emerging market currencies have been falling in opposition to the greenback amid geopolitical tensions within the wake of the Russia-Ukraine warfare, issues over development, excessive world crude costs, sustained inflation and central banks worldwide adopting hawkish financial coverage method.
“We are relatively better placed. We are not a closed economy. We are part of the globalised world. So, we will be impacted (by global developments),” the finance minister mentioned on the sidelines of an occasion right here.
She was responding to a query on the motion of rupee in opposition to the greenback.
In its Financial Stability Report (FSR) launched on Thursday, the Reserve Bank of India (RBI) mentioned the rupee has carried out comparatively higher than its friends.
“While the Indian Rupee (INR) has been subjected to bouts of downward pressure, it has emerged among the better performing currencies relative to peers,” the twenty fifth FSR report mentioned.
The rupee breached the psychologically vital stage of 79 per greenback stage for the primary time ever on Wednesday and has additionally hit a collection of lifetime lows this month.
However, the rupee rebounded from its all-time low to shut 5 paise larger at 78.98 (provisional) in opposition to the US greenback on Thursday.
Since the warfare in Ukraine broke out in late February, the RBI has expended its overseas alternate reserves with the intention to protect the rupee from steep depreciation. Since February 25, the headline overseas alternate reserves have declined by USD 40.94 billion.
Last week, Reserve Bank Deputy Governor, Michael D Patra mentioned the central financial institution won’t permit “jerky movements” of the rupee and careworn that the Indian forex has witnessed least depreciation in latest instances.
“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 mentioned.
Source: www.financialexpress.com”