Rupee Not Sliding, Dollar Is Strengthening: Sitharaman

In a controversial statement, Finance Minister Nirmala Sitharaman has said that the rupee has not weakened, however, it is the dollar that has strengthened. 

During the media interaction after attending the annual meetings of the International Monetary Fund (IMF) and the World Bank, Sitharaman said that the fundamentals of the Indian economy were strong.  

While defending the 8 per cent slide in the rupee against the American dollar, she said that inflation in India was low compared to other parts of the globe. 

Sitharaman said, "First of all I would look at it as not rupee sliding, I would look at it as dollar strengthening, dollar strengthening incessantly." 

Amid the fear of global recession, she said that the currencies of several nations are fighting against a strengthening dollar. 

Meanwhile, the Indian rupee reached a record low versus the dollar in the week ending 14 October but managed to recoup a large part of its losses, thanks to likely intervention by the country's central bank in both spot and forwards.

The rupee ended at 82.3500 per US dollar on Friday, compared with 82.3450 in the previous session and down less than 0.1 per cent from 82.3200 in the prior week.

Earlier on Saturday, Sitharaman in Washington DC said that the Indian economy will stay on course and is projected to grow at 7 per cent in the financial year (FY) 2022-23.

She was speaking at the plenary meeting of the international monetary and financial committee (IMFC) at the IMF headquarters during the annual meetings 2022.

She said that this is an outcome of the conducive domestic policy environment and the government's focus on key structural reforms to boost growth.