The government’s Chief Economic Advisor (CEA) V Anantha Nageswaran on Wednesday (3 December) said he is “not losing sleep” over the Indian rupee’s sharp depreciation, even as the currency breached the 90-per-US-dollar mark for the first time, the Indian Express reported.
Speaking on the sidelines of the Confederation of Indian Industry’s India Edge summit in New Delhi, he expressed confidence that the trend would reverse in the coming year.
“I am not losing sleep over it,” Nageswaran told reporters, downplaying concerns about the currency’s record lows.
The CEA added that he expects stability to return soon. “It (rupee) will come back next year. Right now, it is not impacting inflation or exports,” he said.
The rupee, which briefly touched the threshold earlier this week, finally slipped past the 90-per-dollar level on Wednesday (3 December), continuing a months-long weakening streak.
The currency has fallen by more than 5 per cent against the US dollar so far this calendar year, making it Asia’s worst performer.
A combination of factors has contributed to the decline. The prolonged delay in finalising a free trade agreement with the United States has resulted in Indian goods facing cumulative tariffs of 50 per cent since late August, hurting export competitiveness.
Latest data shows merchandise exports fell 12 per cent year-on-year in October, while the trade deficit widened to a record $41.7 billion.
Simultaneously, the Reserve Bank of India has eased its interventions, selling nearly $400 billion in foreign currency in FY25 but only $44 billion in the first half of FY26.
Foreign portfolio investors have also pulled out close to $17 billion from Indian equities this year after substantial inflows in 2023 and minimal investment in 2024.
Nageswaran’s remarks follow the Finance Ministry’s recent assessment that the rupee’s depreciation has been gradual and broadly aligned with emerging market trends.
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