Govt keeping 'good watch' on rupee, several currencies declined against USD: Sitharaman
New Delhi, Sep 7: Finance Minister Nirmala Sitharaman has said that the government is keeping a 'good watch' on exchange rates, stressing that besides rupee several other currencies have depreciated against the US dollar.
"The rupee slide is largely against the dollar, not against any other currencies. That's also because of the way globally, the dollar has strengthened," she said when asked if the slide of rupee against greenback is a concern.
"This is not the case only with rupee versus dollar, it's the case with many other currencies versus the dollar. So we are keeping a good watch on this," she told PTI in an interview.
The rupee plummeted to a record low and closed at 88.27 against dollar after touching an intra-day low of 88.38 on Friday. The fall came amid concerns over US tariffs, while intervention by the Reserve Bank of India through state-run banks helped limit further losses.
The steep tariff of 50 per cent imposed by the US on Indian goods took effect on August 27. The tariffs - among the highest in the world - include a 25 per cent penalty for buying crude oil from Russia.
On August 7, President Donald Trump administration enforced a 25 per cent tariff on Indian goods, citing India's persistent oil imports from Russia and long-standing trade barriers.
The sectors which are impacted due to high import duties include textiles/ clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery.
Sectors such as pharma, energy products and electronic goods are out of the ambit of these sweeping duties. The US accounted for about 20 per cent of India's USD 437.42 billion worth of goods exports in 2024-25.
The US has been the largest trading partner of India since 2021-22. In 2024-25, the bilateral trade in goods stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports).
Calling the landmark GST overhaul a 'people's reform', Sitharaman said that rationalisation of tax rates for a wide swath of products will benefit every family, boost consumption, and bolster the economy.
The finance minister said, she will personally monitor passing on of goods and services tax (GST) rate cuts in the form of price reduction even as some of the industries have already announced price moderation.
