Chief Economic Advisor (CEA) V Anantha Nageswaran said on Wednesday in New Delhi that the rupee has lost less value against the US dollar than other major currencies like the Euro, the British pound, and the Japanese yen.
He said that the aggressive tightening of money by the US Federal Reserve was to blame for the fall of the rupee and other currencies against the US dollar.
Because of this, foreign capital is leaving many emerging economies, including India, which puts pressure on their currencies.
“The Japanese yen, Euro, Swiss franc, and British pound have lost much more value against the dollar than the rupee,” he said here on the sidelines of an event.
He said that both the government and the RBI have taken steps to stop the flow of dollars out of the country and encourage the flow of foreign funds so that the loss of value of the local currency can be stopped.
This month, the Reserve Bank of India (RBI) announced new rules that make it easier for foreign money to come into India. Also, the government has raised the import tax on gold.
As part of a package of measures to bring in more foreign currency, the Reserve Bank of India (RBI) raised the limits on how much companies could borrow from abroad and made it easier for foreign investors to buy government bonds.
It has also raised interest rates in recent months, making it more appealing for both residents and non-residents to own Indian rupees.
In intraday spot trading at the interbank foreign exchange market on Monday, the rupee hit an all-time low of 80 against the US dollar.
So far in 2022, the local currency has lost about 7.5% of its value against the dollar.