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Indian Rupee strong against every currency, RBI intervened in markets: Nirmala Sitharaman in LS

Written by  Shgun S -- December 12th 2022 03:12 PM
Indian Rupee strong against every currency, RBI intervened in markets: Nirmala Sitharaman in LS

Indian Rupee strong against every currency, RBI intervened in markets: Nirmala Sitharaman in LS

New Delhi, December 12: Union Finance Minister Nirmala Sitharaman reiterated on Monday that the Indian rupee has been strong in comparison to other major currencies.

In response to a question in the Lok Sabha, Sitharaman stated that the Reserve Bank of India has used its available foreign exchange reserves to intervene in the markets to ensure that the Dollar-Rupee does not fluctuate too much.


"The Indian Rupee has been strong against every currency. Reserve Bank has used foreign exchange reserves that it has to intervene in the market to make sure that the Dollar-Rupee fluctuation does not go too much," Sitharaman stated.

Typically, the RBI intervenes in the markets from time to time through liquidity management, including the sale of dollars, in order to prevent a sharp depreciation of the rupee.

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Last week, the World Bank reiterated that the rupee would fare relatively well in 2022 when compared to other emerging market peers.

Dhruv Sharma, a senior World Bank economist, stated last Tuesday that "The Rupee has depreciated just about 10 per cent over the course of this year. That might sound like a large number, but relative to many other emerging market peers, India hasn't fared that badly."

For the record, the rupee has recovered significantly from its all-time low. It is currently trading around 82.0 per US dollar, down from a record low of 83 in mid-October.

The US Federal Reserve and central banks in other advanced economies had previously tightened monetary policy, causing the Indian currency to depreciate. When policy rates in the United States and other advanced economies rise, the rupee falls in value.

- ANI

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