NEW DELHI: A day after rupee breached the psychological 70-mark against dollar, Union Minister Arun Jaitley has reinsured investors that India has comfortable foreign exchange reserves to deal with currency volatility and that the developments in the global market are being closely monitored.“Recent developments relating to Turkey have generated global risk aversion towards emerging market currencies and strengthened the dollar,” Jaitley said, adding that “India’s Macro fundamentals remain resilient and strong”.
Rupee on Tuesday had crashed to a life-time low of 70.09. “India’s foreign exchange reserves are comfortable by global standards and sufficient to mitigate any undue volatility in the foreign exchange market,” Jaitley said in a tweet post the news of falling rupee and widening trade deficit. The RBI’s foreign exchange reserves were at $402.70 billion in the week ended August 3, down $1.49 billion over the preceding week, according to the latest data released by the central bank.
The rupee has been one of the worst performers among the currencies of emerging market economies. It has lost over 9.49 per cent of its value this year. “The developments are being monitored closely to address any situation that may arise in the context of the unsettled international environment,” Jaitley tweeted on Wednesday.