India macro fundamentals strong, rupee not depreciating against any currency other than USD: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman connected Sunday rejected disapproval implicit the descent of the Indian rupee, saying it has depreciated lone against a strengthening US dollar but remained unchangeable against each different currencies due to the fact that of the beardown macroeconomic fundamentals.

In an interrogation with PTI, she said a 3 per cent depreciation successful the rupee against the US dollar successful past fewer months is simply a substance of interest arsenic it makes imports costlier, but she rejected disapproval that the section currency has seen all-round weakness.

"I americium acrophobic but I volition not judge the disapproval that 'Oh Rupee is weakening!' Our macroeconomic fundamentals are strong. Rupee wouldn't beryllium unchangeable against each the currencies if the fundamentals were weak," she said.

The Indian rupee has been nether unit successful the past fewer months but it continues to beryllium the slightest volatile currency against the US dollar among its Asian and planetary peers. The reasons for the rupee hitting grounds lows astir connected a regular ground against the US dollar scope from widening commercialized shortage to a surge successful the dollar scale aft the US Federal Reserve hinted astatine less complaint cuts successful 2025.

The Reserve Bank has reportedly spent USD 77 cardinal from its overseas speech reserves to support the rupee from falling sharply successful the spot market, taking India's overseas speech reserves down to USD USD 629.557 cardinal arsenic connected January 30, 2024, from USD 701.176 cardinal connected October 4, 2024.

"Rupee's volatility is against the dollar. Rupee has behaved successful a acold much unchangeable manner than immoderate different currency," Sitharaman said. Rupee volatility is noticeable arsenic the dollar is strengthening.

"RBI besides has been looking astatine ways successful which it volition interfere successful the marketplace lone to stabilise the request for avoiding immense volatility based reasons. So we are each intimately watching the situation," she said.

She termed critics pointing to rupee volatility and depreciation arsenic "a precise speedy argument".

"But successful today's dollar strengthening situation and successful the caller US administration, the rupee volition person to beryllium understood successful its narration with the dollar (and) the fluctuations which travel arsenic a effect of that. Criticisms tin come, but those criticisms volition besides person to spell with a effect with a spot much study," she added.