Rupee's Rollercoaster: Navigating Currency Weakness Amid Economic Growth

Economic Advisory Council member Sanjeev Sanyal expressed no concern over the rupee's weakness, citing historical precedents of major economies experiencing similar trends during high growth phases. He emphasized that India's trade negotiations with the U.S. and EU are key, with significant implications for the rupee's future trajectory.

Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister, dismissed concerns over the rupee's depreciation, likening the situation to past economic growth periods in nations like China and Japan, which also faced currency weaknesses.

Speaking at the Times Network's India Economic Conclave 2025, Sanyal explained that India's currency has mostly been allowed to adjust freely, with the Reserve Bank of India intervening only to curb excessive fluctuations. He emphasized that a weak rupee does not inherently signal economic distress, as long as domestic inflation remains unaffected.

As India aggressively negotiates trade deals with the U.S. and EU, the outcomes could significantly impact the rupee, which has fallen to record lows. While navigating these trade talks, India remains cautious not to escalate tensions, maintaining a balanced stance against U.S. tariffs.

(With inputs from agencies.)