New Delhi, Feb 3: 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.
“There is no concern about the value of the rupee. The volatility in rupee is being managed by the RBI,” Pandey told reporters.
He said the Indian rupee is “free-float” and no control or fixed rate is applicable on the currency.
He said the exchange rate is facing pressure amid unabated foreign fund outflows.
The rupee depreciated 67 paise to hit record low of 87.29 against the US dollar in early trade on Monday after Trump Tariffs on Canada Mexico and China triggered fears of a broad trade war.
Donald Trump slapped Canada and Mexico with 25 per cent duties and China with a 10 per cent duty, The move was the first strike in what could usher a destructive global trade war, forex traders said.
In 2025, the Indian rupee depreciated 1.8 per cent from the 85.61 to a dollar level on December 31, 2014.
The rupee continued to face pressure due to sustained foreign fund outflows and the broad strength of the American currency in the overseas markets due to unabated dollar demand from oil importers and weak risk appetite.
Foreign institutional investors (FIIs) offloaded equities worth Rs 1,327.09 crore in the capital markets on a net basis on Saturday, according to exchange data.
Meanwhile, India’s forex reserves increased USD 5.574 billion to USD 629.557 billion in the week ended January 24, the Reserve Bank said on Friday.
In the previous reporting week, the overall kitty had dropped USD 1.888 billion to USD 623.983 billion.
The reserves have been on a declining trend for the last few weeks, and the drop has been attributed to revaluation, along with forex market interventions by the Reserve Bank of India (RBI) to help reduce volatilities in the rupee.(PTI)
