New Delhi, February 11, 2025 – Finance Minister Nirmala Sitharaman addressed the Lok Sabha, shedding light on the recent depreciation of the Indian rupee against the U.S. dollar. Citing former RBI Governor Raghuram Rajan, she attributed the rupee’s decline primarily to the strengthening of the dollar rather than domestic economic weaknesses.
Sitharaman emphasized that the dollar index surged by 6.5% between October 2024 and January 2025, impacting major global currencies, including the rupee. However, she reassured the house that the depreciation is not a cause for concern and could, in fact, boost Indian exports.
The Finance Minister further clarified that the rupee operates under a market-driven exchange rate system, influenced by both domestic and global factors. She assured that the Reserve Bank of India (RBI) is actively monitoring the situation and intervenes only to manage volatility, not dictate a fixed exchange rate.
With this address, Sitharaman aimed to dismiss fears surrounding the rupee’s fluctuation and position it within a broader global economic context.
