Sitharaman said that the action taken by the US Federal Reserve has an "impact on all currencies", adding that "we have to only be sure that fluctuation is not going to be severe".
While low oil prices and expected portfolio inflows provide support for the rupee, this is all contingent on the coronavirus being contained in both India and abroad
Global economy is on firmer ground and Dixit Joshi of Deutsche Bank expects GDP growth of 3.4 percent in 2017. However, currency volatility will be a key risk, Joshi told CNBC-TV18‘s Shereen Bhan at the Davos Summit.
Currency volatility post Britain's decision to exit from the EU may put pressure on India's exports in the immediate future as both British Pound and Euro will depreciate, giving greater competitiveness to their products, exporters' body FIEO said
The pound fell to its biggest low since 1985 as the referendum results came in on Friday and such a sharp decline can not be easily covered by IT companies, says NASSCOM President R Chandrashekar.
Sanctions have cut off Russia's access to foreign capital at the same time that falling oil prices (down almost half from their 2014 peak) make that access even more essential – so Russia can refinance its debt.
"We have warned investors that the level of corporate indebtedness within emerging markets would mean that a close eye should be kept on corporate solvency," Jefferies said in a note.
Central banks in Europe and Japan are on a path of substantial monetary easing, which may counter the Fed effect.
In a bid to control the rupee's depreciation, RBI Governor D Subbarao today said that they haven‘t ruled out a separate dollar window for oil marketing companies.
Geometric's founder and managing director. Manu Parpia, tells CNBC-TV18 that they are going to stick with their growth guidance of 22-25% for the year.
Infosys Technologies' weaker than expected results sparked concerns over growth rates of India's showpiece outsourcing sector as the company flagged a sluggish global economic recovery and currency volatility.