The Reserve Bank of India (RBI) governor Shaktikanta Das stated during the monetary policy announcement today that the depreciation of rupee has happened in an orderly fashion till dateDas mentioned in his speech that the depreciation of Rupee is primarily happening due to the appreciation of US dollar rather than any other internal macroeconomic economic factors.
“Indian rupee has moved in a relatively orderedly fashion depreciating 4.7 percent against the US dollar till yesterday,” said Das.
Although, before the announcement started today, the exchange value of rupee started to go up as against dollar. So, the RBI is hopeful that the depreciation might even be less than 4.7 per cent.
Das pointed out in his speech that DXY has appreciated 8 per cent against a basket of major currencies from April 1 ,2022. As compared to such currencies, and other emerging economy currency and other Asian peers, the Indian rupee has performed comparatively better, added Das.“But the depreciation of rupee is much lesser as compared to other currencies due to the stated policy of the RBI. There has been a steady improvement in the market to prevent volatility. We remain watchful and focused stability of the Indian rupee,” said Das.