Rupee vs. Dollar: The biggest reason for this decline in the rupee against the dollar is the greater demand for the dollar in the market. Besides this, several other factors are also contributing to this decline.

It will find its way... Finance Minister's statement came amid the fall in the rupee.

Rupee vs. Dollar: The Indian currency, the rupee, is currently at its lowest level. On Wednesday, the rupee broke the 90 mark and reached an all-time low. The biggest reason for this decline against the dollar is the greater demand for the dollar in the market.

Additionally, continued selling by foreign investors, geopolitical uncertainty, and stalled trade deal negotiations can also be blamed for the rupee's decline. Union Finance Minister Nirmala Sitharaman has now issued a statement regarding this rupee decline. She believes the Indian currency will find its footing amid India's strong growth outlook.  

The rupee will have to find its own way.

"The rupee will have to find its own path," the Finance Minister said at the 23rd edition of the Hindustan Times Leadership Summit (HTLS). He stressed that the debate on currency levels should reflect current economic realities and not compare them with past conditions.

The Finance Minister said, "Look at the fundamentals of the economy, look at the growth. The debate on currency should be decided according to the current reality and not by making direct comparisons with past situations."

Assess the strength of the economy: Finance Minister.

The Finance Minister further said, "As far as the rupee-dollar exchange rate is concerned, when the currency value is low, the natural logic is that exporters should take advantage of it. Incidentally, some people say that at the time of US tariffs, this provided some relief. Even if this is true, I am not completely convinced by that explanation - but it is true that the strength of the economy should also be assessed along with it."

It's worth noting that on December 4th, the Indian rupee fell to an all-time low of 90.46 against the US dollar, primarily due to the delay in the India-US trade deal and the continued outflow of foreign capital from the Indian stock market. Notably, with retail inflation at record lows and GDP growth above 8%, the domestic currency's weakening against the dollar is surprising.

How much will the economy grow?

GDP growth in the second quarter reached a six-quarter high of 8.2%. Meanwhile, India's retail inflation fell to a record low of 0.25% in October. The Finance Minister believes that the Indian economy will continue to grow in the future, and overall growth this year (FY26) could reach 7% or even more.