New Delhi, 13 October (H.S.):

Union Finance Minister Nirmala Sitharaman said on Tuesday that the rupee had depreciated significantly over the past 18 months and that the Reserve Bank of India (RBI) would continue its efforts to curb excessive volatility in the domestic currency.

The Finance Minister made these remarks during a panel discussion at the Bloomberg New Economy Forum 2026, held in New Delhi. She clarified that the RBI was not seeking to fix or defend any particular exchange rate for the rupee against the US dollar. Instead, its primary objective was to contain excessive market volatility. She added that the central bank’s recent measures had provided support to the rupee.

The rupee appreciated by one per cent on Monday and strengthened to Rs 94.96 against the US dollar in early trading on Tuesday.

Sitharaman stated that India’s economic fundamentals remained strong and that the country had adequate foreign exchange reserves. She attributed the fluctuations in the rupee primarily to external challenges, while emphasising that the Central Government was working to maintain and strengthen the country’s underlying macroeconomic fundamentals.

The Finance Minister also said that fiscal discipline should not be a cause for concern among investors. However, she acknowledged that fluctuations in the rupee against the US dollar remained a challenge that the government would continue to monitor.

Last week, the RBI announced several measures to arrest the rupee’s decline. The central bank introduced a special facility for public sector oil and gas marketing companies to enable them to meet their dollar requirements without placing additional demand on the spot foreign exchange market.

In addition, the RBI tightened regulations governing foreign exchange derivatives trading to curb speculative activity involving the rupee. The central bank also directed banks to maintain a 20 per cent reserve requirement against dollar purchases exceeding US$200,000.

These measures are aimed at managing pressure on the domestic currency, reducing excessive exchange-rate volatility and maintaining stability in the foreign exchange market.

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Hindusthan Samachar / Jun Sarkar