Commerce and Industry Minister Piyush Goyal has stated that the rate of rupee depreciation has decreased, expressing optimism that in 8-10 years, the rupee will start appreciating against the US dollar, contributing to faster economic growth. Goyal highlighted collaborative efforts between the Reserve Bank of India and the finance ministry to spur economic growth.
Chaudhary s comments come after the rupee hit a new all-time low of 83.41 per dollar on December 13. Since then, the Indian currency has gained some ground and was even trading in the sub-83 per dollar territory early on December 18
Although CPI inflation has dropped it remains well above RBI’s target. The central bank, in its upcoming monetary policy review, is likely to take a wait-and-watch narrative, making no change in its policy stance
Rupee depreciation also negatively impacted petroleum product imports in value terms, but its positive effect on value of petroleum product exports from India partly offset the hit to the country’s overall oil and petroleum product trade in the first half of FY24.