Why panic?… When the RBI Governor asked a question after the fall of rupee, presented the figures of 30 years

Sanjay Malhotra On Rupee Depreciation: There is a lot of discussion about the ongoing decline of the Indian Rupee against the US Dollar. Now RBI Governor Sanjay Malhotra has given his reaction on this matter. He said that the Indian economy has shown strength despite the weakness of the rupee. During an interview, Malhotra said that the rupee has fallen by about 4.68% so far in the year 2025. But its impact will not be serious on the economy.

The RBI Governor said there are several reasons behind the rupee’s fall this year, including a strong US dollar, withdrawal of foreign funds, and the delay in the India-US trade tariff deal. However, RBI believes that many sectors are performing well, due to which the economy is not going to be affected.

What did Sanjay Malhotra say

Speaking to India Today, Sanjay Malhotra said that if we look at the rupee devaluation in the last 20 years, there has been no major fluctuation in the year 2025. The rupee has depreciated by about 3 per cent per year in the last 10 years and by about 3.4 per cent in the last 20 years. Let us tell you, on December 16, the rupee fell to a record low of 91.16 against the US dollar. The currency is projected to decline by 4.68% by 2025, making it the worst performing currency among Asian currencies.

Due to fall in Indian Rupee

Another important reason for the rupee’s decline is that the Reserve Bank of India (RBI) has adopted a less aggressive intervention strategy than before due to the decline in domestic inflation. He also said that RBI tries to control the daily fluctuations in the currency market. According to Sanjay Malhotra, the current level of the rupee is not a matter of much concern, and the government is also keeping an eye on it. The government is ready to deal in its own way.

Trade deficit at 5 month low

According to the RBI Governor, the trade deficit has come down to a 5-month low in November. Which was due to reduction in imports of gold, oil and coal. At the same time, Indian exports to America have increased by 10% on monthly basis and 21% on annual basis last month, which indicates improvement in foreign demand. According to RBI data, India has import coverage of about 11 months, and external debt coverage of about 92%, enabling the bank to meet external liabilities.

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Pressure on rupee due to global reasons

According to analysts, indian rupee The decline is being linked to global factors, such as higher interest rates in the US and a stronger dollar. This situation has been common not only in India but in many emerging markets. However, the RBI has indicated that it will continue to maintain a consistent balance in monetary and exchange-rate policy to maintain stability in the economy.