News

Govt watchful, mindful of impact of falling rupee on India’s imports: Finance Minister

Depreciation of rupee makes India's imports costlier, while on the other hand exports become attractive

Asserting that Indian currency has performed relatively better than others against dollar, Finance Minister Nirmala Sitharaman said the government is watchful and mindful of the impact of falling rupee on the country's imports. Depreciation of rupee makes India's imports costlier, while on the other hand exports become attractive.

She said ‘the Reserve Bank of India is very keenly watching the exchange rate. We are not alone in this world. We are also open as an economy... the rupee against the dollar and other currencies versus the dollar, the rupee has performed relatively better’. Admitting that falling rupee would impact immediately on imports, which will become expensive, she said ‘that is one thing I am very watchful and mindful of because a lot of our industries do depend on some essential goods to be imported upon for their production’.

Emerging market currencies have been falling against the dollar amid geopolitical tensions in the wake of the Russia-Ukraine war, concerns over growth, high global crude prices, sustained inflation and central banks worldwide adopting hawkish monetary policy approach. The rupee hit its all-time low of 79.12 against dollar during the intra-day trade but recovered to close at 78.94 (provisional) against the greenback on July 01.