Finance Minister Nirmala Sitharaman says recent rupee-dollar movements are driven by both global and domestic factors. She states that the Reserve Bank of India (RBI) does not aim to maintain a fixed exchange rate. Instead, RBI intervention is meant to curb excessive volatility in the currency market. Sitharaman frames the exchange-rate fluctuations as part of broader market dynamics, rather than evidence of policy targeting a specific level of the rupee.
In the same remarks, Sitharaman points to India’s economic outlook, citing the country’s position as the fastest-growing major economy. She also addresses a separate issue involving Karnataka’s funding, saying the Finance Commission plays the key role in allocating funds between the Centre and states. While the sources focus primarily on the rupee explanation, they also note that Sitharaman links her comments on economic performance and fiscal allocation to ongoing debates about governance and resource distribution. Overall, the statements emphasize a rules-based approach to currency management and defined institutional roles in funding decisions.
