New Delhi, December 3 – India’s Chief Economic Adviser (CEA) V. Anantha Nageswaran said on Wednesday that the decline of the rupee against the dollar will not affect inflation and exports in the country.
The Chief Economic Adviser made this statement while speaking to journalists on the sidelines of a CII programme.
The rupee has been declining against the dollar for several sessions and has crossed the 90 level.
He further said that the rupee is expected to recover against the dollar next year.
Amid increased tariffs on Indian exports from the US and global economic uncertainties, the rupee has declined 5 percent against the dollar in 2025 so far. The RBI is also selling dollars to prevent excessive volatility in the rupee, but due to forex constraints, this cannot be done beyond a certain limit.
The reasons for the rupee’s decline include weak foreign investment, large offshore positioning, and uncertainty regarding India-US trade deals.
Analysts said the market sentiment remains concerning as traders are waiting for signs of stability in the rupee and clarity on trade deals between India and America.
An analyst said, “The rupee’s decline will stop once an India-US trade deal happens and it may even strengthen. However, much will depend on what tariffs are imposed on India as part of the deal.”
Indian stock markets opened flat and closed with marginal decline.
At the end of trading, Sensex closed at 85,106.81 with a marginal decline of 31.46 points and Nifty closed at 25,986 with a weakness of 46.20 points or 0.18 percent.
IT and financial shares helped support the market. Among indices, Nifty IT closed with a gain of 0.74 percent, Nifty Bank 0.13 percent and Nifty Financial Services 0.23 percent. Besides, pharma, media and services indices also closed in green.
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