Finance Minister Nirmala Sitharaman Reacts To Falling Rupee Vs Dollar

Finance Minister Nirmala Sitharaman said the rupee should be allowed to "find its own level", as questions grew over the currency's slide against the US dollar. Speaking at the Hindustan Times Leadership Summit (HTLS) 2025, Sitharaman was asked if the rupee was now "a little too high" against the American currency.

The Finance Minister avoided giving a specific target for the exchange rate, but linked the current level to wider global moves. The rupee had hit a fresh record low of 90.43 against the dollar on Wednesday, December 3, before recovering on Thursday and closing at 89.89, gaining 26 paise.

Rupee and currency politics

Nirmala Sitharaman accepted that the Bharatiya Janata Party had earlier attacked a falling rupee while in Opposition, but stressed that the background at that time was not the same as the current situation.

Responding to this political context, Nirmala Sitharaman noted how sensitive exchange rate commentary can be. "I am quite tempted to say lot of things. Rupee, currency exchange rates etc., are rather too sensitive... inflation rate was so high back then, economy was fragile and when your currency also takes a hit it is nobody's bright spark," Nirmala Sitharaman said, speaking at HTLS 2025 on Saturday.

She argued that any discussion on the rupee must consider India's current macroeconomic position. "Look at the fundamentals of the economy, where we stand, some factors are very important which position India in a very different ledge... this currency debate will have to be circumscribed by those realities," Nirmala Sitharaman said, suggesting markets now judge India through a different lens.

Rupee and currency market moves

Recent currency moves were also driven by global data and investor flows, according to forex traders. They pointed to a weaker US dollar after non-farm payroll numbers in the United States fell sharply below forecasts, which helped the rupee stabilise at lower levels despite selling by foreign investors and higher crude oil prices.