Nirmala Sitharaman attributes rupee fluctuations to global, domestic factors

Union Finance Minister Nirmala Sitharaman on Sunday (June 14, 2026) said fluctuations in the rupee against the U.S. dollar are influenced by a range of global and domestic factors.

Speaking to reporters at Devanahalli near Bengaluru during a programme marking 12 years of Prime Minister Narendra Modi-led NDA government, Ms. Sitharaman said that the global and domestic factors are such as geopolitical uncertainties, foreign capital movements, and India’s dependence on imports such as crude oil, fertilizer, and gold. “The Reserve Bank of India intervenes in the foreign exchange market only to curb excessive volatility and not to maintain a fixed exchange rate,” she said.

She explained that the central bank acts sparingly whenever there are sharp fluctuations in the currency market.

The Finance Minister noted that several international developments have a bearing on the rupee’s movement. These include policy decisions by the U.S. Federal Reserve, movements in major global currencies, and foreign investment inflows and outflows.

“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,” Ms. Sitharaman said.

Finance Minister targets Rahul Gandhi

Meanwhile, Ms. Sitharaman launched a sharp attack on Leader of the Opposition in the Lok Sabha Rahul Gandhi, accusing him of consistently undermining India’s achievements while criticising Mr. Modi and the Union government.

Addressing party workers at the Viksit Bharat Sankalp Samavesha in the city, Ms. Sitharaman alleged that Mr. Gandhi routinely criticised government initiatives and downplayed the achievements of Indian people in an attempt to target Mr. Modi and the Centre.

“Whenever the Leader of the Opposition speaks in the Lok Sabha, he only criticises developments and downplays the achievements of the people of India, thinking that he is attacking the Prime Minister or the Central government,” she added.

Refuting claims that India faces an impending crisis, Ms. Sitharaman said the country’s economic fundamentals remain strong.