Rupee-dollar fluctuations driven by global, domestic factors: Sitharaman (opens original article in a new tab)

Union Finance Minister Nirmala Sitharaman explained that rupee-dollar fluctuations are driven by global and domestic factors, with the RBI intervening to stabilize the currency. She highlighted India's economic growth and clarified funding allocation processes.

• Rupee-dollar fluctuations are influenced by global factors like geopolitical tensions and U.S. Fed policies, as well as domestic factors like import dependence on crude oil, fertilizers, and gold.
• The Reserve Bank of India intervenes to curb excessive volatility but not to maintain a fixed exchange rate.
• India's economy is cited as the fastest-growing major economy, with growth across multiple sectors including manufacturing, agriculture, and services.
• The Finance Minister emphasized that state funding allocations are determined by the Finance Commission, not the Union government.