Former RBI Governor Raghuram Rajan's statement on weak condition of rupee against dollar is in discussion.

Raghuram Rajan on Indian Rupee: The Indian rupee has been weakening against the dollar for some time. People are worried about the fall in the rupee, but former Reserve Bank of India (RBI) Governor Raghuram Rajan says that there is no need to worry too much about the fall.

The dollar is strengthening against many currencies

Raghuram Rajan said in an interview, 'The focus always remains on the rupee-dollar exchange rate. But the reality is that the dollar is strengthening against many currencies. Now look at the euro. At the beginning of last year a dollar could buy 91 cents, now it can buy 98 cents. The euro is depreciating by about 6-7% against the dollar. The same happened with the Indian rupee, it went from 83 to 86.

This is why Raghuram Rajan is not worried

Talking about the consequences of rupee weakening against the dollar, Rajan said, 'The strengthening of the dollar is partly due to possible new tariffs imposed by Trump, which will result in reduction in the US trade deficit. For the US, reducing the trade deficit means strengthening the dollar. Currently, some potential safe-haven purchases of dollar assets are also being seen. So seeing all this I am not too worried.

Exports increased due to weakening of rupee against dollar

The former RBI governor said the rupee has not really fallen much and some additional fall could be useful for Indian exports. The rupee touched an all-time low of 86.64 on Tuesday and is currently at 86.58. After the victory of Donald Trump in the US Presidential elections, the dollar is strengthening and this strength is weakening not only the rupee but also many major currencies.

Rupee is among the most stable currencies

Despite the decline, the rupee remains one of the most stable currencies in the world. Some time ago, an SBI report said that the rupee has fallen by about 3 percent against the dollar, but its position is better than many currencies. Meanwhile, the Reserve Bank of India is making efforts to stop the fall in the rupee. According to a report, RBI is selling dollars through public sector banks to improve the position of the rupee.