New Delhi, March 30 Finance Minister Nirmala Sitharaman said on Monday that the country's economic fundamentals are strong, and that the Indian rupee is "doing very well" against the US dollar, compared to other emerging market economies.
Since the outbreak of the West Asia conflict on February 28, 2026, the rupee has depreciated by 4.1 per cent, closing at Rs 94.82 per USD on March 27, 2026.
In response to a supplementary question in the Lok Sabha regarding the rupee's depreciation, Sitharaman said: "India's economy is strong, our fiscal situation is strong, and the entire world is praising our fiscal deficit management. Our foreign exchange reserves are solid.
"Compared to other emerging economies, the rupee is doing well (it's performing well)... Absolutely well."
In a written reply, Sitharaman said that the rupee depreciation is not specific to the Indian Rupee (INR), as major Asian currencies have also depreciated since the beginning of the West Asia conflict.
Certain currencies, such as the South Korean Won, the Thai Baht, and the Philippine Peso, have declined against the USD by more than the rupee, by 4.6 per cent, 5.5 per cent, and 4.8 per cent, respectively, she said.
Responding to the question, Minister of State for Finance Pankaj Chaudhary said that the value of the rupee is determined by the market and is influenced by various factors.
"The government and the RBI are closely monitoring the value of the rupee," he said.
Chaudhary said that inflation in India has eased, with the average retail inflation declining from 6.2 per cent in 2020-21 to 4.6 per cent in 2024-25 and further to 1.9 per cent in 2025-26 (April-February). Prices of most essential commodities have remained stable or exhibited a decreasing trend, he said.
The rupee (INR) depreciated by 9.9 per cent against the US Dollar (USD) in the current fiscal (till March 27, 2026).
