The Finance Ministry official told PTI that the rupee movement as of now was not of any concern as exchange rates are always volatile when US yields change it has an impact on all currencies and the rupee is no exception.
Asked if the fluctuation would impact inflation as imports will be costlier, the official said: “That is, of course, an issue but I’m sure the Reserve Bank will keep it under consideration when they take their decisions.”
The official further said fluctuations in foreign exchange markets “are normal and nothing abnormal or exclusive to the Indian rupee”.
“These things can also reverse as exchange rates are very volatile… It is too early to say that this rate will hold for a long time,” the official added.
After appreciating for the most part of this year, the Indian rupee started depreciating this month as global investors reduced their exposure to emerging markets on expectations of higher interest rates in the US and deepening concerns over the Chinese economy. The rupee which was at 82.6 to a dollar as of December 2022 end, depreciated to an all-time closing low of 83.10 on Friday.
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