Nageswaran’s comments came at a time when the rupee hit a record low, crossing the 90-mark against the US dollar in opening trade.
File Photo: IANS
Indian rupee is set to improve against the dollar next year, and right now, it’s not hurting our exports or inflation, said Chief Economic Advisor V Anantha Nageswaran on Wednesday.
Nageswaran’s comments came at a time when the rupee hit a record low, crossing the 90-mark against the US dollar in opening trade.
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“It will come back next year. Right now, it’s not hurting our exports or inflation. I am not losing my sleep over it. If it has to depreciate, now probably is the right time,” Nageswaran said on the sidelines of a Confederation of Indian Industry (CII) event in New Delhi.
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He said if the rupee has to depreciate, now probably is the right time. CEA also expressed confidence in a possible reversal in the next financial year.
Notably, the rupee has slipped about 4-5% since April amid sustained dollar strength.
The rupee is depreciating amid foreign institutional investor (FII) outflows and sustained buying of dollars by banks. Recently, the Reserve Bank of India (RBI) has allowed the currency to largely follow market dynamics, intervening only to curb excessive volatility.
India’s GDP has shown growth of 8.2% in Q2 FY26, following a 7.8% rise in the June quarter.
Inflation has stayed below the RBI’s targets, with the retail inflation cooling to 0.25% in October due to record-low food prices.
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