Rupee Fluctuates; Nirmala Sitharaman Says it Will Find Its Natural Level
FM Sitharaman says the rupee will stabilize naturally, citing strong economic fundamentals amid recent market volatility.
Finance Minister Nirmala Sitharaman declared on Saturday at the Hindustan Times Leadership Summit 2025 that the rupee “will find its own level”, pushing back against concerns that the currency is overvalued against the dollar and currently hovering near the 90-mark. She cautioned that exchange-rate discussions are “rather too sensitive” and must be viewed through the lens of India’s strong economic fundamentals rather than political optics.
Acknowledging that the BJP had sharply criticised a falling rupee when in opposition, Sitharaman distinguished the present context: “When we raised the issue, inflation was sky-high and the economy was fragile. A currency hit on top of that was nobody’s bright spark.” She stressed that today’s macroeconomic stability—low inflation, robust forex reserves, and sustained growth—allows the currency to move naturally without panic.
“Look at the fundamentals of the economy, where we stand—some factors position India on a very different ledge. This currency debate will have to be circumscribed by those realities,” the finance minister said, effectively signalling that the government is comfortable with market-determined levels as long as underlying indicators remain healthy.
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The rupee had touched a record low of 90.43 on December 3 amid foreign investor outflows and rising crude prices but rebounded 26 paise to 89.89 the next day after softer-than-expected US jobs data weakened the dollar. Sitharaman’s remarks come days after the RBI introduced measures—including a $5 billion forex swap facility—to ease pressure without aggressive intervention.
By refusing to set artificial floors or targets, the government is sticking to its long-standing policy of managed float while projecting confidence that India’s structural strengths will anchor the currency over the medium term.
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