New Delhi

Finance Minister Nirmala Sitharaman on Monday asserted that India’s economic fundamentals remain robust, stating that the rupee is holding up well against the US dollar compared to other emerging market currencies.

Responding to a query in the Lok Sabha regarding the depreciation of the rupee, Sitharaman emphasised that India’s macroeconomic indicators remain strong. She highlighted the country’s sound fiscal position, effective deficit management, and healthy foreign exchange reserves as key strengths supporting the currency.

She noted that the rupee’s recent decline is part of a broader global trend, particularly in the wake of the ongoing West Asia conflict that began in late February 2026. Since then, the rupee has weakened by about 4.1 per cent, closing at Rs 94.82 per US dollar on March 27.

However, the minister pointed out that several other Asian currencies have seen sharper declines during the same period. Currencies such as the South Korean won, Thai baht, and Philippine peso have depreciated more than the Indian rupee against the dollar, she said, underlining that the rupee’s performance remains relatively stable in comparison.

In a written reply, Sitharaman reiterated that the movement of the rupee is influenced by global developments and is not unique to India. She maintained that, when viewed alongside its peers, the Indian currency continues to perform steadily.

Minister of State for Finance Pankaj Chaudhary added that the value of the rupee is determined by market forces and depends on multiple factors, including global economic conditions. He said both the government and the Reserve Bank of India are closely monitoring currency movements.

Chaudhary also highlighted easing inflation trends in the country. Retail inflation has declined significantly over the years—from 6.2 per cent in 2020–21 to 4.6 per cent in 2024–25, and further down to 1.9 per cent during April–February of 2025–26. Prices of essential commodities, he noted, have largely remained stable or have shown a downward trend.

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Overall, the government maintained that despite external pressures, India’s economic stability continues to support the rupee, which has depreciated about 9.9 per cent against the US dollar in the current financial year so far.