Union Minister Arun Jaitley said India has sufficient foreign exchange reserves to mitigate any undue volatile in the currency market. His comment comes a day after the rupee fell sharply to breach the 70-mark against the dollar for the first time.
In a series of tweets, Mr. Jaitley said that the developments were being monitored closely to address any situation that may arise in the context of the “unsettled international environment”.
The rupee on Tuesday fell to a record low of 70.08 against the dollar, mainly, as the sharp fall in the Turkish lira continued to affect all emerging market currencies. “Recent developments relating to Turkey have generated global risk aversion towards emerging market currencies and the strengthening of the dollar,” the Minister tweeted.
“India’s foreign exchange reserves are comfortable by global standards and sufficient to mitigate any undue volatility in the foreign exchange market,” he said.