Finance Minister Nirmala Sitharaman on Saturday offered the government’s first response to the rupee falling to ₹90 against the US dollar. She said the exchange rate must stay market-determined and should be allowed to “find its own level.”
Speaking at the Hindustan Times Leadership Summit, she said exchange rates are “too sensitive” to be dictated or heavily controlled. She urged observers to assess the currency’s movement by looking at India’s current economic fundamentals rather than comparing it with past periods.
Pushing back against political criticism, she said the economy today is far stronger than it was when the ruling party was in Opposition. “Today, the fundamentals of the economy are sorted. This currency debate needs to be circumscribed with today’s realities,” she said.
Sitharaman also argued that a weaker rupee is not entirely negative. She said exporters are likely to benefit and that when tariffs hurt Indian products, a softer currency can offer “some respite.” She added that the rupee should not be viewed in isolation, saying economic strength must be considered along with the exchange rate.
Responding to concerns about declining household savings, Sitharaman said savings are not decreasing but shifting into new financial avenues. “Savings are growing, and so is investment today,” she said.
She noted that deposits in public banks or post office schemes may appear lower, but total household assets continue to rise due to credit expansion and increased participation in financial markets and digital instruments. “We shouldn’t narrow the debate on savings to what’s going into public banks or post offices,” she said.
Despite the rupee touching ₹90, the Finance Minister maintained that India’s macroeconomic position remains strong and the currency’s movement must be understood in that larger context.
