Global Factors Responsible for Rupee Depreciation: Sitharaman

New De lhi: Amid depreciation of the rupee against dollar, Finance M i n i s t e r N i r m a l a Sitharaman said in the Lok Sabha on Monday that global factors such as the Russia-Ukraine conflict, soaring crude oil prices and tightening of the g l o b a l f i n a n c i a l conditions, were the major reasons for the weakening of the Indian rupee against the US dollar. She added that another reason was that the foreign portfolio  investors have withdrawn about $14 billion from the Indian equity. S i t h a r ama n s a i d t h a t currencies such as the British pound, the Japanese yen and
the Euro have weakened more than the Indian rupee against the US dollar and therefore, the Indian rupee has strengthened against these currencies in 2022. The depreciation of a currency is likely to enhance export competitiveness which in turn impacts the economy positively. The depreciation also impacts the imports by making them more costly.

About Post Author