India’s Rupee Will Endure Dollar Strengthening, Sitharaman Says
The Indian currency has plummeted to new lows against the U.S. dollar in recent weeks amid fears of a global recession.
(Bloomberg) -- The Indian currency will withstand the recent strengthening of the dollar, Finance Minister Nirmala Sitharaman said, reiterating a central bank forecast that the South Asian economy will grow at 7% in the year to March, 2023.
“The Indian rupee has performed much better than many other emerging market currencies,” Sitharaman said at a media briefing in Washington D.C. late on Saturday. The country’s central bank was working to contain the rupee’s volatility, she said, adding that the “rupee will find its own level.”
Rupee Declines to New Record; Bonds Pare Losses: Inside India
The Indian currency has plummeted to new lows against the US dollar in recent weeks amid fears of a global recession. While the Narendra Modi-led government is concerned about the global economic outlook and geopolitical challenges, it is confident the country will “stay on course,” according to a statement Saturday from the finance ministry.
The International Monetary Fund lowered India’s growth forecast to 6.8% this month on “significant” headwinds. The Reserve Bank of India last month cut its GDP forecast to 7% from its earlier prediction of 7.2%.
Some of the other highlights from Sitharaman’s comments from the media briefing in the US:
- India is “keeping a watch” to ensure it doesn’t have a disproportionate trade deficit with any country
- India inflation is at a “manageable level” and the government is making efforts to keep it below 6%
- During its G20 presidency next year, India will focus on issues such as multinational development banks, the debt situation and climate change
- Note: India will assume the G20 presidency from Dec. 1 to Nov. 30 next year
- Another area of focus during the G20 presidency will be developing standard operating procedures for cryptocurrencies
- The fundamentals of the Indian economy and its foreign-exchange reserves are both robust
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