Finance Minister Nirmala Sitharaman said the Indian rupee will stabilise on its own, highlighting the importance of economic fundamentals amid recent fluctuations
New Delhi: Finance Minister Nirmala Sitharaman said the Indian rupee will find its own level while speaking at a summit on Saturday in New Delhi.
She responded to a question on whether the rupee is currently “too high,” emphasising that the context now differs from when her party raised similar concerns while in opposition.
Sitharaman noted that during their time in opposition, inflation was high, the economy was fragile, and currency depreciation had a more significant impact. “I am quite tempted to say a lot of things. Rupee, currency exchange rates etc., are rather too sensitive. Not escaping the comment, we raised it much better while in opposition,” she said.
She urged observers to focus on India’s economic fundamentals, adding, “Look at the fundamentals of the economy, where we stand, some factors are very important which position India in a very different ledge… this currency debate will have to be circumscribed by those realities.”
The rupee recently hit a fresh all-time low of 90.43 against the US dollar on 3 December 2025, pressured by foreign investor sell-offs and rising crude oil prices. Delays in announcing the India-US trade deal also contributed to the decline. However, the rupee rebounded on 4 December, gaining 26 paise to close at 89.89, aided by a weaker US dollar following disappointing ADP non-farm payroll data.
Sitharaman’s comments at HTLS 2025 reaffirmed the government’s position that currency movements should be assessed within the broader economic context, rather than through political or short-term perspectives.
At the Hindustan Times Leadership Summit 2025, Finance Minister Nirmala Sitharaman addressed concerns over the Indian rupee’s recent volatility. She highlighted that currency movements must be viewed against the backdrop of India’s current economic conditions, which differ from those during the opposition period. During that time, high inflation and a fragile economy amplified the effects of currency depreciation, prompting stronger political focus on the rupee.
Sitharaman emphasised that the rupee’s current level reflects broader economic fundamentals, including foreign investment flows, crude oil price trends, and trade developments. The rupee had touched 90.43 against the US dollar on 3 December amid foreign investor selling and the postponement of the India-US trade deal. However, it recovered to 89.89 on 4 December following weaker US employment data.
The Finance Minister underscored that policy responses and assessments must consider structural economic strengths rather than short-term market movements. Her remarks signal a continued government approach of contextualising currency fluctuations within overall economic health, reaffirming confidence in the rupee’s long-term stability.
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