More Stories

Informist, Thursday, Feb. 13, 2025

 

--Sitharaman on rupee depreciation: Govt, RBI to continue exercising vigil 

--Sitharaman: Overvalued currencies erode national competitiveness 

--Sitharaman: Shall ensure food prices are not a concern for citizens 

 

NEW DELHI – The government and the Reserve Bank of India will continue exercising vigil on currency movement, Finance Minister Nirmala Sitharaman said on Thursday. The finance minister's comments come in the backdrop of a sharp depreciation of the rupee against the dollar. The rupee had touched a record low of INR 87.95 per dollar on Monday. 

 

"We believe that the overvalued currencies erode national competitiveness as exports become expensive and domestic companies will have to be given support," Sitharaman said in the Rajya Sabha. A rise of 6.5% in the US dollar index between October and January has led to the depreciation in the rupee, Sitharaman said.

 

Emerging market currencies, including the Indian rupee, took a beating after November when dollar supremacist Donald Trump's Republican Party emerged victorious in the US election. President Trump's protectionist stance on domestic manufacturing has led to a significant flight of capital towards the world's largest economy. The Indian currency, which closed at INR 86.90 per dollar on Thursday, has depreciated 3.4% against the dollar since November.

 

Besides maintaining a vigil on currency movement, the government will continue to take measures to ensure stability in food prices through the subsidised sale of pulses, rice, and wheat under the Bharat brand, Sitharaman said. "Government's attempt to remove the stress of price rise is actually being received on the ground. The efforts will continue."

 

India's headline inflation fell to a five-month low of 4.31% in January from 5.22% in December, led by lower food prices. The food inflation also cooled to a five-month low of 6.02% in January from 8.39% in December. "We shall make sure that price should not be a burden on the ordinary citizens," Sitharaman said replying to a debate on the Budget for 2025-26 (Apr-Mar) in the Upper House. End 

 

Reported by Krity Ambey

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.