New Delhi: Finance Minister Arun Jaitley on Wednesday said that the unabated fall in Indian Rupee is because of global factors and there were no domestic reasons behind this. Speaking of how the rupee plummeted to a historic low of 71.97 a dollar for the sixth consecutive day, Jaitley said that one must bear in mind that the dollar had strengthened against almost every currency while the Rupee has either consistently strengthened or remained in a rage but not weakened. Also Read - RBI Asks UCBs to Implement System-based Asset Classification
Talking about the fall in Rupee, Jaitley said, “If you look at the domestic economic situation and global situation, there are not domestic reasons attributable to this, but all reasons are global.” Also Read - Real GDP in 1st Half of The Year to Remain in Contraction Zone, Says RBI Governor
Jaitley further said that Rupee is better off than most of what other currencies of the world were nearly four to five years ago. He went on to add that the Reserve Bank of India (RBI) is doing whatever is necessary for the economy. The Finance Minister was of the opinion that raising a hue and cry regarding the fall in Rupee was uncalled for. He said, “I don’t think there is any need for the world’s fastest-growing economy to come out with panic and knee-jerk reactions.” Also Read - RBI 24th Monetary Policy Committee Meet: No Change in Repo Rate, Reverse Repo Rate, Announces RBI
Jaitley also said that the government has consistently maintained 4 per cent inflation during the last four years.
The Indian Rupee plummeted to a historic low of 71.97 a dollar before finding some respite, staging some recovery towards the tail-end. The battered rupee lost 165 paise in the last six trading sessions. Following the unabated fall, RBI swung into action to put a floor under the sliding currency and stave off a full-blown meltdown.
Worsening global trading conditions against the backdrop of escalating trade wars and rising global oil prices largely caused panic among forex traders. Most emerging market currencies came under pressure, tumbling to new record lows. The home currency Wednesday opened higher by 18 paise at 71.40 a dollar. The bond yield curve, however, softened to 8.05 per cent.