RBI to sustain rupee stabilisation push amid global headwinds

Finance Minister Nirmala Sitharaman on Tuesday sought to reassure markets about the rupee's recent depreciation against the US dollar, stating that the currency weakness stems primarily from global uncertainties rather than any deterioration in India's economic position.

Sitharaman highlighted that India's macroeconomic fundamentals remain robust, with forex reserves providing a solid foundation for currency stability. The finance minister expressed confidence in the Reserve Bank of India's capacity to manage domestic currency volatility through its ongoing interventions and policy measures.

The assurance comes as the rupee has touched new lows in recent trading sessions, prompted by broader dollar strength driven by international economic and geopolitical factors. The minister's remarks underscore the government and central bank's coordinated approach to addressing currency pressures while maintaining monetary stability.

The RBI has previously deployed various tools, including open market operations and foreign exchange management strategies, to moderate rupee fluctuations. Sitharaman's statement indicates these efforts will continue as external conditions persist, with authorities prioritising orderly currency market functioning without imposing artificial restrictions on natural market movements.