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Rupee depreciation against US dollar due to uncertainty in global macro economy |
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| 13-2-2025 | |||
New Delhi, Feb 13 (PTI) Finance Minister Nirmala Sitharaman on Thursday said the rupee along with other Asian currencies has depreciated against the US dollar on account of uncertainty pervading the global macro economy. In her reply to a discussion on the Union Budget 2025-26 in Rajya Sabha, Sitharaman also said that overvalued currencies erode national competitiveness as exports become expensive and domestic companies will have to be given support. She said that the value of the Indian rupee is influenced by several factors. Those factors are the movement of the dollar, the index of the dollar, trends in capital flows, level of interest rates, movement in crude prices, current account deficit etc. "Quarter four of 2024, certainly witnessed extensive currency-related volatility across major countries, not just India. Indian rupee, like other Asian currencies, depreciated against the US dollar on account of uncertainty pervading the global macro economy," Sitharaman said. She said that the US Dollar Index rose to 6.5 per cent during October 21, 2024, to January 27, 2025. "Major Asian currencies such as the Korean won, Indonesian Rupiah, and Malaysian Ringgit, depreciated by 8.1 per cent, 6.4 per cent and 5.9 per cent respectively," Sitharaman said. The finance minister shared that G10 currencies also depreciated during this period by more than 5.5 per cent. She said the Japanese yen, British Pound and Euro depreciated by 7 per cent, 6.6 per cent and 5.8 per cent respectively. "So the government believes that overvalued currencies erode national competitiveness as exports become expensive and domestic companies will have to be given support. I would like to allay the concerns or apprehensions of the honourable members on account of INR fluctuation, the government and RBI will continue to exercise necessary vigil," she said. The finance minister said that RBI is making several efforts to ensure the Indian rupee is stabilized. PTI PRS MR Source: PTI |
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