New Delhi: The government was closely monitoring developments relating to Turkey, which had generated global risk aversion towards emerging market currencies, and would address any situation arising in the context of the unsettled international environment, senior Cabinet minister Arun Jaitley said in a Facebook post on Wednesday.
However, India’s macro fundamentals remained resilient and strong, Jaitley added. “India’s foreign exchange reserves are comfortable by global standards and sufficient to mitigate any undue volatility in the foreign exchange market.”
In another post on Twitter, Jaitley said foreign exchange reserves were comfortable by global standards and sufficient to mitigate any undue volatility in the foreign exchange market, Reuters reported.
The rupee fell to a record low of 70 against the U.S. dollar on Tuesday, before recovering to end at 69.89, amid fears that financial troubles faced by Turkey would quickly spread to emerging economies, triggering a capital flight. This year, the rupee has weakened 8.3% against the dollar, while foreign investors sold $6.8 million and $5.15 billion in equity and debt markets, respectively.