New Delhi: Finance Secretary Tuhin Kanta Pandey on Monday said that there is nothing to worry about falling Rupee against a dollar as the Reserve Bank of India (RBI) is managing the volatility of the local currency. The government official made the comment on a day when the Indian currency depreciated 67 paise to hit record low of 87.29 against the US dollar in early trade on February 3, 2025. The Rupee plunged after US President Donald Trump-led administration announced tariffs on Canada, Mexico and China, triggering fears of a broad trade war.
“There is no concern about the value of the rupee. The volatility in rupee is being managed by the RBI,” Pandey told media persons.
Why Rupee is fallling
The Indian rupee is “free-float” and no control or fixed rate is applicable on the currency. The finance secretary said adding that the Indian currency exchange rate is facing pressure amid unabated foreign fund outflows.
Trump has imposed 25 per cent duties on Canada and Mexico and 10 per cent on China. Forex traders are concerned about a possible trade war that could usher in a destructive global trade war..
In 2025, the Indian currency depreciated 1.8 per cent from the 85.61 to a dollar level on December 31, 2014.
The Rupee is under pressure as it is facing pressure due to relentless foreign fund outflows and the strengthening of US Dollar in the overseas markets due to unabated dollar demand from oil importers and weak risk appetite.
On February 1, 2205, Foreign institutional investors (FIIs) sold equities worth Rs 1,327.09 crore in the capital markets. Meanwhile, India’s forex reserves increased USD 5.574 billion to USD 629.557 billion in the week ended January 24.
India’s foreign reserves have been on a declining trend for the last few weeks because of the revaluation, along with forex market interventions by the Reserve Bank of India (RBI) to help reduce volatilities in the rupee.
Amid rupee falling to a record low level of 87.29 to a dollar, Finance Secretary Tuhin Kanta Pandey on Monday said there is no concern over rupee value and the Reserve Bank of India is managing the volatility of the local currency. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
