Nirmala Sitharaman said a stronger U.S. dollar, higher oil prices and the Middle East conflict are weighing on the Indian rupee, while noting depreciation can help exports but lift import costs.
India Finance Minister Nirmala Sitharaman said the weakening Indian rupee is being driven by external forces rather than solely domestic factors. She cited a stronger U.S. dollar, higher oil prices and the Middle East conflict as the main pressures on the currency. Sitharaman added that a weaker rupee can improve export competitiveness, but it also increases the cost of imports, a trade-off that matters for an economy sensitive to energy prices and global financial conditions.