- Union Minister Piyush Goyal said the government does not intervene in rupee valuation
- Rupee appreciation attributed to market forces amid ongoing geopolitical tensions
- Rupee gained 63 paise to settle at 95.73 against the US dollar recently
The Government does not intervene in movement of rupee's valuation, Union Commerce and Industry Minister Piyush Goyal said on Saturday, stressing that exchange rates are determined by market forces and shaped by multiple global factors.
Speaking at the 19th Rozgar Mela in New Delhi, Goyal said: “The government doesn't interfere with the rupee's movement; market forces decide that. I think, of late, the rupee has appreciated.”
The remarks came at a time when the rupee continues to face pressure amid ongoing geopolitical tensions in West Asia. The currency saw some relief on Friday after it recovered from previous volatility.
ALSO READ | Rupee Surges 63 Paise To Settle At 95.73 Against US Dollar
The rupee closed at 95.73 (provisional) against the US dollar by gaining 63 paise from its previous close, supported by easing crude oil prices and expectations of intervention by the Reserve Bank of India.
On Thursday, Goyal said the government was considering several steps to contain the widening current account deficit (CAD) amid concerns over a weakening rupee and broader trade deficit pressures.
Global supply chain risks continue to persist amid geopolitical tensions, with key West Asia shipping routes, including the Strait of Hormuz, under close watch.
At the Rozgar Mela, Goyal said strong domestic demand was visible across the economy, with both imports and exports rising in tandem. “Whichever sector I speak to, they say that demand is so good, imports are also increasing along with exports, so there is demand,” he said.
On the broader trade and industrial strategy, the minister said the government remains focused on boosting domestic manufacturing, reducing import dependence and addressing supply chain vulnerabilities linked to over-reliance on specific geographies. He said efforts were underway to strengthen local production across sectors as part of the wider self-reliance push.
Goyal also referred to ongoing work under the semiconductor mission and new sectoral proposals aimed at attracting investment, as announced in the Budget.
On investment inflows, he said the government had been engaging with players in sectors such as electronics, chemicals and capital goods to tap export potential. He added that detailed data on India's major imports and potential export opportunities would also be placed in the public domain as well.
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