Finance Minister Nirmala Sitharaman said the Indian rupee’s movement against the U.S. dollar is influenced by global developments, domestic economic factors, foreign capital flows, and import dependence.

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• Finance Minister Nirmala Sitharaman stated that fluctuations in the Indian rupee are influenced by a combination of global economic developments and domestic market conditions.
• Geopolitical uncertainties, changing investor sentiment, and cross-border capital movements continue to affect the rupee’s exchange rate against the U.S. dollar.
• India’s reliance on imports such as crude oil, fertilisers, and gold also plays an important role in determining currency movements.
• The Reserve Bank of India intervenes in the foreign exchange market only to reduce excessive volatility rather than maintain a fixed exchange rate.
• Foreign institutional investments and global financial trends significantly impact demand and supply dynamics in the domestic currency market.
• The Finance Minister made these remarks while addressing reporters during a programme held near Bengaluru marking 12 years of the NDA government.
• Stable macroeconomic policies, prudent fiscal management, and resilient financial institutions help strengthen confidence in India’s currency markets.
• The government continues to monitor international developments closely as evolving global conditions influence exchange rates and broader economic performance.