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Even as rupee closed at 94.8 a dollar on Monday (March 30, 2026) after depreciating to an all time low of over 95 earlier in the day, Union Finance Minister Nirmala Sitharaman said that the rupee was “going fine” against the U.S. dollar compared with other emerging market currencies.
The rupee depreciated by more than ₹3 since March 2, 2026, when the pair was trading over 91. The Indian currency has depreciated by 4.1% since the commencement of the West Asia conflict on February 28, 2026, crossing ₹95 for the first time on Monday (March 30, 2026).
With oil prices remaining sticky at over ₹104 a barrel and foreign institutional investors (FIIs) continuing to sell Indian stocks causing dollar outflow on Monday (March 30, 2026), the rupee’s value plunged to an all time low.
The Reserve Bank of India (RBI) capped net open positions that banks can hold in the onshore currency market at $100 million for banks at the end of the day.
Parliament Budget Session: Follow LIVE updates on March 30, 2026
The limit was up to 25% of the bank’s capital and was intended to arrest speculation in the market. While the central bank’s move did yield some results with the rupee opening at 93 on Monday (March 30, 2026), weak equity markets leading to FII exit and still high oil prices led to further depreciation.
The issue of rupee deprecation was also raised by Opposition members in the Lok Sabha but Ms. Sitharaman asserted that India’s economic fundamentals remain strong.
“India’s economy is strong, our fiscal situation is strong, and the entire world is praising our fiscal deficit management. Our forex reserves are solid,” the Finance Minister said, adding, “Compared to other emerging economies, the rupee is doing fine (theek chal raha hain)..absolutely going fine”.
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Ms. Sitharaman intervened after Samajwadi Party member Dharmendra Yadav referred to Prime Minister Narendra Modi’s earlier statement, made as the Chief Minister of Gujarat, in which Mr. Modi had claimed falling value of rupee eroded the then Prime Minister Manmohan Singh’s reputation.
“Now, I want to ask whether the Prime Minister’s reputation has been affected or not,” Mr. Yadav asked.
The Finance Minister then responded by saying that Mr. Modi emerged on top at a recent survey of world leaders. She said the BJP was worried about rupee’s falling value as India was considered one of the “fragile five” economies under the UPA. She also targeted the Opposition for trying to pull down the country.
In a written reply, Ms. Sitharaman said the depreciation was not specific to the Indian currency, noting that several major Asian currencies had also weakened against the dollar during the period. She said the South Korean won, Thai baht and Philippine peso had declined by 4.6%, 5.5% and 4.8%, respectively — more than the rupee.
Minister of State for Finance Pankaj Chaudhary said the rupee’s value is market-determined and influenced by multiple global and domestic factors. “The government and the RBI are keeping a close watch on the value of the rupee,” he said.
Mr. Chaudhary added that inflation had eased in recent years, with average retail inflation declining from 6.2% in 2020-21 to 4.6% in 2024-25 and further to 1.9% in 2025-26 (April–February). Prices of most essential commodities had remained stable or shown a declining trend, he said.
Published – March 30, 2026 10:08 am IST
