Forex reserves comfortable to counter rupee fall: Jaitley

TIL Desk/Business/New Delhi/ A day after the rupee fell to its record low, Union Minister Arun Jaitley said on Wednesday that India holds sufficient foreign exchange reserves to mitigate any undue volatility in the foreign exchange market.

Geo-political pressures, along with outflows of foreign funds and high crude oil prices dragged the Indian rupee to its lowest ever intra-day level of over 70 against the US dollar on Tuesday when it plunged to 70.08 — the lowest ever — against the greenback.

However, intervention by the Reserve Bank of India (RBI) and stabilisation in the global currency markets pared the rupee’s early fall. At the end of the intra-bank trade session on Tuesday, the Indian rupee strengthened by four paise at 69.90 against the dollar, compared to Monday’s close of 69.94 per greenback.

“India’s foreign exchange reserves are comfortable by global standards and sufficient to mitigate any undue volatility in the foreign exchange market,” Jaitley tweeted.