Enough forex reserves to counter rupee fall: Jaitley

Enough forex reserves to counter rupee fall: Jaitley
Highlights

A day after the rupee fell to its record low, Union Minister Arun Jaitley said on Wednesday that India holds sufficient foreign exchange reserves to mitigate any undue volatility in the foreign exchange market Geopolitical pressures, along with outflows of foreign funds and high crude oil prices dragged the Indian rupee to its lowest ever intraday level of over 70 against the US dollar on Tuesd

New Delhi: A day after the rupee fell to its record low, Union Minister Arun Jaitley said on Wednesday that India holds sufficient foreign exchange reserves to mitigate any undue volatility in the foreign exchange market. Geo-political pressures, along with outflows of foreign funds and high crude oil prices dragged the Indian rupee to its lowest ever intra-day level of over 70 against the US dollar on Tuesday when it plunged to 70.08 - the lowest ever - against the greenback.

However, intervention by the Reserve Bank of India (RBI) and stabilisation in the global currency markets pared the rupee's early fall. At the end of the intra-bank trade session on Tuesday, the Indian rupee strengthened by four paise at 69.90 against the dollar, compared to Monday's close of 69.94 per greenback. "India's foreign exchange reserves are comfortable by global standards and sufficient to mitigate any undue volatility in the foreign exchange market," Jaitley tweeted.

Reserve Bank's foreign exchange reserves were at $402.70 billion in the week ended August 3, down $1.49 billion over the preceding week, latest data released by the central bank showed. In the current financial year, which began in April 1, the rupee has depreciated by around 6.7 per cent against the US dollar.

"However, India's macro fundamentals remain resilient and strong. The developments are being monitored closely to address any situation that may arise in the context of the unsettled international environment," he said in another tweet."Recent developments relating to Turkey have generated global risk aversion towards emerging market currencies and the strengthening of the dollar. The developments are being monitored closely to address any situation that may arise in the context of the unsettled international environment," Jaitley, who is currently convalescing, said in a separate tweet.

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