India’s rupee will endure dollar strengthening, Sitharaman says

Mumbai: 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 per cent 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 DC 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.”

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 per cent this month on “significant” headwinds. The Reserve Bank of India last month cut its GDP forecast to 7 per cent from its earlier prediction of 7.2 per cent.