Indian Rupee Displays Stability Amid Global Volatility

Indian Rupee Displays Stability Amid Global Volatility /PTI

VoM News Desk | April 25, 2024 | 05:51 PM IST | India | Follow on Google News

Indian Rupee Displays Stability Amid Global Volatility

Indian Rupee Displays Stability Amid Global Volatility

In the financial year 2023-24, the Indian Rupee emerged as one of the least volatile currencies among its emerging market counterparts and certain advanced economies, according to the Monthly Economic Review report by the Department of Economic Affairs. With the Rupee-USD exchange rate fluctuating within the range of Rs 82-83.5 per USD, it showcased stability compared to previous years.

The report attributes this stability to India’s robust macroeconomic fundamentals, financial stability, and improvements in its external position. Despite challenges like a stronger US dollar and elevated treasury yields, the Rupee maintained resilience.

Looking ahead, the report anticipates continued stability supported by robust foreign inflows and favorable trade deficits. India’s foreign exchange reserves, reaching an all-time high, provide a buffer against external shocks, covering 11 months of projected imports and more than 100% of total external debt.

Moreover, capital inflows have surged in the financial year 2023-24, contributing to the rise in foreign exchange reserves. With the RBI’s intervention in the forex market, particularly through liquidity management, the Rupee has maintained stability amidst global uncertainties.

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