Nirmala Sitharaman Discusses Rupee Fluctuations Driven by Global Factors

Union Finance Minister Nirmala Sitharaman stated on Sunday, June 14, 2026, that the Indian rupee's volatility against the U.S. dollar is attributed to multiple global and domestic factors. Speaking at an event in Devanahalli, near Bengaluru, she highlighted geopolitical uncertainties, foreign capital movements, and India’s dependence on crucial imports including crude oil, fertilisers, and gold.

Ms. Sitharaman elaborated that the Reserve Bank of India (RBI) intervenes in the foreign exchange market primarily to address excessive volatility, rather than to maintain a fixed exchange rate. "The central bank acts sparingly whenever there are sharp fluctuations in the currency market," she noted, indicating a cautious approach.

The Finance Minister pointed out that international events significantly impact the rupee's performance. These include decisions made by the U.S. Federal Reserve, variations in major international currencies, and the inflow and outflow of foreign investment. She stated, "The rupee’s movement against the U.S. dollar is shaped by several factors, including global economic uncertainties, U.S. Federal Reserve policy decisions, fluctuations in major international currencies, and foreign capital inflows and outflows."

In a separate address, Ms. Sitharaman levelled strong criticisms at Rahul Gandhi, the Leader of the Opposition in the Lok Sabha. She accused him of undermining India's progress and focusing his critiques on Prime Minister Narendra Modi and the central government. Addressing party workers at the Viksit Bharat Sankalp Samavesha, she claimed that Mr. Gandhi routinely diminishes the accomplishments of the Indian populace, mistaking this for attacking the government.

Ms. Sitharaman also dismissed concerns regarding an impending economic crisis, asserting that the foundational economic structures of the country remain robust. Through these remarks, she sought to reassure both policymakers and the general public about the health of the Indian economy.