No need to panic over rupee devaluation, says Finance Minister Arun Jaitley

According to Arun Jaitley, the recent trend in the Indian rupee's devaluation has been caused due to external factors.

Published: 05th September 2018 09:47 PM  |   Last Updated: 05th September 2018 10:12 PM   |  A+A-

Arun Jaitley

Finance Minister Arun Jaitley | PTI

By IANS

NEW DELHI: Finance Minister Arun Jaitley on Wednesday said there is no need to worry over the steep fall in the Indian rupee's value against the US dollar as the inherent strength of the country's economy will aid in arresting the downtrend.

According to Jaitley, the recent trend in the Indian rupee's devaluation has been caused due to external factors such as fluctuations in the global crude oil prices, trade war tensions and outflows of funds towards the US.

"If you look at the domestic economic situation and global situation, there are no domestic reasons attributable to this (devaluation)," Jaitley said at a media briefing after the meeting of the Union Cabinet.

The minister said that besides the US dollar the Indian rupee has not devalued against any other major currency in the world including the Pound, Euro and the Yen.

"The reasons are global. We must bear in mind that in the last few months the dollar has strengthened against almost every currency and therefore most global currencies have weakened vis-a-vis the dollar," Jaitley said.

"No need for the world's fastest growing economy to come out with panic and knee jerk reaction...." 

On Wednesday, the Indian rupee settled at a record closing low of 71.75 against the US dollar, weaker by 17 paise than its previous close of 71.58 per greenback.

It recovered from the all-time low of 71.97 per dollar reached earlier in the day.

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Comments(3)

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  • Rishi

    Thai batt is more stronger than rupee. Bring some good finance minister
    3 months ago reply
  • G.Ranga Chary

    Fluctuations in the values of currencies will be mostly due to external factors, not with standing domestic factors. Recollect how crude prices kept on increasing from 2012-2013 when GOI abolished administered price mechanism for petroleum products, and linking them to the international market prices, and petrol prices domestically kept on increasing, and due to which demand for dollars increased and rupee value kept on falling. At that point of time Sri Jaitely as opposition leader, blamed it on the mismanagement by the then ruling establishment. Public memory may be short, but Sri Jaitely should remember what he said then and what is happening now is more or less the same and should own responsibility instead of blaming external developments for current rupee fall.
    3 months ago reply
  • vishal

    due to industries closing we are importing paying through our nose. This way we will start bleeding. Common man is affected.
    3 months ago reply
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