Rupee's movement post Ukraine war more about resilience than weakness: RBI Governor
New Delhi, November 2: Reserve Bank of India Governor Shaktikanta Das on Wednesday said that the story of the rupee's movements following the war in Ukraine is more about India's resilience and stability despite the unrelenting strengthening of the US dollar rather than a story of weakness. His remarks came during his inaugural address at the Annual FIBAC 2022 conference organised jointly by industry body FICCI and IBA.
"On a financial year basis, almost all major currencies - barring a few like the Swiss franc, the Singapore dollar, the Russian rubble and the Indonesian rupiah - have depreciated against the US dollar by more than the INR," Das stated.
In the fiscal year 2022-23, the rupee fell by 8.0 percent. During the same time period, the US dollar increased by 13.0 percent.
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Das further said this holds true even on a calendar year basis as the rupee has depreciated by 9.8 percent whereas the US dollar has appreciated by 15.8 percent.
The movement of the rupee's exchange rate has recently been a topic of discussion for many, including the media.
"Talk of unidirectional downward descent and the RBI's defence is dominating the narrative in the public space. It is, therefore, important to address the issue free of emotions and fully loaded with the facts," he said while speaking about the exchange rate of the rupee.
Concerning global headwinds, he stated that no country is immune to such developments, but the strength of India's macro-fundamentals has stood out in comparison to peers, testifying to prudent macroeconomic policies and the resilience of the buffers it had built up.
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- ANI
