New Delhi, Mar 31 (KNN) Union Finance Minister Nirmala Sitharaman said on Monday, in a written reply to a question in the Lok Sabha, that the depreciation of the Indian rupee against the US dollar is part of a broader global trend, even as domestic inflation has eased significantly in recent years.
She added that the rupee was “going fine” against the US dollar compared with other emerging market currencies.
She emphasised that India’s macroeconomic fundamentals remain strong, supported by robust growth, easing inflation, and improved fiscal and corporate health, with no adverse impact on the country’s creditworthiness.
The rupee closed at Rs 94.82 per US dollar on March 27, 2026, marking a 9.9 per cent depreciation in 2025–26 so far. Since the onset of the West Asia conflict in late February, it has weakened by 4.1 per cent. However, other Asian currencies have seen sharper declines.
Retail inflation has moderated, falling from 6.2 per cent in 2020–21 to 1.9 per cent in 2025–26 (April–February), indicating stable prices for most essential commodities.
She highlighted that currency depreciation can boost export competitiveness but may raise import costs. However, its overall impact on domestic inflation depends on multiple factors, including global prices and demand conditions, making it difficult to isolate.
The minister noted that the rupee remains market-determined, with the Reserve Bank of India (RBI) intervening to curb excessive volatility. Steps taken include limits on banks’ forex positions, easing external borrowing norms, and promoting rupee-based trade.
Sitharaman said, the government has also adopted fiscal and administrative measures to control inflation, such as maintaining buffer stocks, regulating exports and imports, reducing fuel taxes, and subsidised retail sales.
(KNN Bureau)
