Macro fundamentals are intact, FDI terrain shifted to net inflows, says CEA

CHIEF ECONOMIC ADVISER V Anantha Nageswaran on Wednesday downplayed concerns over the rupee’s sharp fall past the 90-per-dollar level, stressing that the currency’s weakness does not currently pose risks to India’s inflation trajectory or export competitiveness.

- FE BUREAU

Speaking at the CII IndiaEdge Summit, Nageswaran said the government is “not losing sleep” over the domestic currency’s slide as long as macroeconomic fundamentals remain intact.

The rupee touched a fresh intra-day low of 90.30 against the US dollar on Wednesday, extending its decline for the sixth consecutive session. The currency has depreciated nearly 5% so far in 2025, pressured by sustained foreign portfolio outflows, heavy bank buying of dollars, and the absence of progress on an India-US trade deal. A fall in domestic equity markets has added further strain, making the rupee Asia’s worst-performing currency this year.