Union finance minister Nirmala Sitharaman quoted former RBI Governor Raghuram Rajan while addressing concerns about the rupee's depreciation against dollar during her Lok Sabha address on Tuesday.
"Former RBI Governor Raghuram Rajan, who even participated in the Bharat Jodo Yatra, has acknowledged on January 15, 2025 that fixation is always with the rupee-dollar exchange rate, reality is dollar has been strengthening against many currencies including the Euro... So it is really a dollar issue," she said during her address.
The finance minister highlighted that currency fluctuations have affected most major global economies. The minister noted that between October of the previous year and January, the dollar index showed a 6.5% increase. The Indian currency recently exceeded 87 for the first time in history.
The former RBI governor previously highlighted the dollar's strength as the primary factor behind the rupee's decline in value.
Rajan in a conversation with a digital news platform explained that the rupee's decline is relatively modest compared to other currencies, suggesting that when viewed through the real effective exchange rate, the depreciation appears less significant.
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