🇮🇳 Why Is the Rupee Weakening? Sitharaman Explained It Today.


Reason:
Strong US Dollar. Higher oil prices. Middle East conflict.
RBI's stance:
↳ No fixed target or band.
↳ RBI intervenes only to curb excess volatility.
Steps to boost forex inflows:
↳ Feb 2026: ECB framework expanded.
↳ June 5: NRI/OCI investment limits relaxed, SEBI registration removed.
↳ Concessional forex swaps for PSU overseas borrowing.
Trade-off:
Weak rupee → Supports exports.
Weak rupee → Makes imports, including oil, more expensive.
No recovery timeline. No target.
The government is watching—the market will decide.
Source: Rajya Sabha Written Reply, July 21, 2026
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