Chief Economic Advisor said: ‘Rupee is able to take care of itself, India is not defending the rupee’

Chief Economic Adviser (CEA) V Anantha Nageswaran said on Tuesday that India is not defending its rupee currency. He said the Reserve Bank of India (RBI) is taking the necessary steps to keep the rupee’s volatility steady gradually and in line with market sentiment.

Speaking at an event here, Nageswaran said the way the Indian rupee is handled reflects the fundamentals of the economy. “India does not defend its rupee. I don’t think the country’s foundations are such that we have to defend our currency. Rupee is able to take care of herself.

It should be noted that the rupee has seen a continuous downward trend this year. The rupee hit an all-time low of 80.15 per dollar in August. However, as of Tuesday, the rupee made a strong comeback and closed at its monthly high of 79.15 against the dollar.

The chief economic adviser said: “The Reserve Bank makes sure that whatever direction the rupee is going is not too fast and its movement is in line with the market. In addition to this, it is also ensured that these measures do not impose any burden on importers or exporters.

Commenting on the recent decline in foreign exchange reserves, Nageswaran said: “Global risk aversion prevents foreign capital from flowing into India. This certainly has an impact on foreign exchange reserves. According to data from the RBI, the country’s foreign exchange reserves fell by $ 3.007 billion to $ 561.04 billion in the week ending August 26.

When asked about the rise in retail price inflation in August, he said that one of the reasons for this inflation was the base effect. In addition to this, the market is also confusing the data on the sowing of Kharif crops. According to data released by the government, the retail inflation rate rose from 6.71% in July to 7% in August.

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Chief Economic Adviser (CEA) V Anantha Nageswaran said on Tuesday that India is not defending its rupee currency. He said the Reserve Bank of India (RBI) is taking the necessary steps to keep the rupee’s volatility steady gradually and in line with market sentiment.

Speaking at an event here, Nageswaran said the way the Indian rupee is handled reflects the fundamentals of the economy. “India does not defend its rupee. I don’t think the foundations of the country are such that we have to defend our currency. Rupee is able to take care of herself.

It should be noted that the rupee has seen a continuous downward trend this year. The rupee hit an all-time low of 80.15 per dollar in August. However, as of Tuesday, the rupee made a strong comeback and closed at its monthly high of 79.15 against the dollar.

The chief economic adviser said: “The Reserve Bank makes sure that whatever direction the rupee is going is not too fast and its movement is in line with the market. In addition to this, it is also ensured that these measures do not impose any burden on importers or exporters.

Commenting on the recent decline in foreign exchange reserves, Nageswaran said: “Global risk aversion prevents foreign capital from flowing into India. This certainly has an impact on foreign exchange reserves. According to data from the RBI, the country’s foreign exchange reserves fell by $ 3.007 billion to $ 561.04 billion in the week ending August 26.

When asked about the rise in retail price inflation in August, he said that one of the reasons for this inflation was the base effect. In addition to this, the market is also confusing the data on the sowing of Kharif crops. According to data released by the government, the retail inflation rate rose from 6.71% in July to 7% in August.

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