Nifty99000 100%

Sensex99000 100%

Article rating: 3.7
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: 1.5
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.7
Article rating: 4.0
Article rating: 4.2
Article rating: No rating


India shouldn’t get too worried over Re depreciation: Sanyal

Author: PTI/Thursday, August 23, 2018/Categories: Currency

India shouldn’t get too worried over Re depreciation: Sanyal

Bengaluru - Principal Economic Adviser to the Finance Ministry Sanjeev Sanyal today sought to allay concerns over the falling Rupee against the US Dollar, saying India should not get too swayed by a single bilateral exchange rate.

"If you take any broad based basket, you will see that the Rupee is not especially weak. We cannot get too swayed by a single bilateral exchange rate," Sanyal told PTI.

He was responding to a question over the hue and cry raised over the Rupee recently breaching the historic low of 70-mark against the US Dollar.

The falling Rupee value should be seen as strengthening of the US Dollarrather than weakness of the Rupee because the Rupee hasbeen stable over the last five years against most global currencies, Sanyal said.

"The Rupee has been very stable over the last five years against most global currencies, except the US Dollar.

Hence, weshould see this as US dollar strengthening rather than rupeeweakness," he said.

Congress President Rahul Gandhi, on the eve of Independence Day celebrations, had hit out at Prime Minister Narendra Modi over the rupee breaching the historic low of 70 against the US Dollar.

Gandhi had said this "historic depreciation" of the Rupee has given the 'supreme leader' a vote of "no confidence", while his Congress party had said it was the Prime Minister's Independence Day gift to the nation.

"The Indian Rupee just gave the Supreme Leader, a vote of NO confidence, crashing to a historic low.

Listen to the Supreme Leader's master class on economics in this video, where he explains why the Rupee is tanking," Gandhi had said on Twitter.

Sanyal said the RBI, the competent authority for managing the exchange rate, has more than adequate forex reserves to manage sharp movements. 

"The RBI has a well-established mechanism that allows the Rupee to find its own level in the medium-term, but manages volatility in the short-term.

It has more than adequate forexreserves to do and manage sharp movements," he said.

The Rupee had recently crashed below the 70-mark in early trade to touch an all-time low of 70.10 against the US Dollar due to worries over the Turkish economic crisis and a sharp plunge in the Lira.

Print Rate this article:
No rating

Number of views (163)/Comments (0)

rajyashree guha


Other posts by PTI
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free