India's reserves are comfortably placed and the rupee's volatility is closely monitored by the central bank, Finance Minister Nirmala Sitharaman said.
The rupee is appreciating against other currencies and only fluctuating against the dollar, she said in reply to queries in the Rajya Sabha on Tuesday. Its performance must be contextualised with that of peers (peer currencies), she said.
“India has withstood the U.S. Federal Bank's decisions better than peers… the rupee is appreciating against other currencies.”
According to the minister, India's dollar reserves “stood at $571.76 billion” as on July 22. “We are still comfortably placed.”
The Reserve Bank of India, she said, is monitoring and intervening only to contain volatility. “The RBI does not intervene to fix value of the Indian rupee… it is (the rupee) free to find its course.”
The rupee has been appreciating against the dollar for the fourth straight session. It has strengthened 0.47% over its previous close to 78.65 against the greenback. Last month, the currency hit a record low of 80 a U.S. dollar.
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