Singapore markets closed
  • Straits Times Index

    3,269.27
    -32.69 (-0.99%)
     
  • Nikkei

    28,546.98
    +727.65 (+2.62%)
     
  • Hang Seng

    20,175.62
    +93.19 (+0.46%)
     
  • FTSE 100

    7,500.89
    +34.98 (+0.47%)
     
  • BTC-USD

    24,172.16
    -15.53 (-0.06%)
     
  • CMC Crypto 200

    574.64
    +3.36 (+0.59%)
     
  • S&P 500

    4,280.15
    +72.88 (+1.73%)
     
  • Dow

    33,761.05
    +424.38 (+1.27%)
     
  • Nasdaq

    13,047.19
    +267.27 (+2.09%)
     
  • Gold

    1,818.90
    +11.70 (+0.65%)
     
  • Crude Oil

    91.88
    -2.46 (-2.61%)
     
  • 10-Yr Bond

    2.8490
    -0.0390 (-1.35%)
     
  • FTSE Bursa Malaysia

    1,506.19
    +0.63 (+0.04%)
     
  • Jakarta Composite Index

    7,129.28
    -31.11 (-0.43%)
     
  • PSE Index

    6,699.66
    +18.98 (+0.28%)
     

India to address volatility in rupee against dollar - government official

·1-min read
FILE PHOTO: Illustration photo of an India Rupee note

By Manoj Kumar

NEW DELHI (Reuters) -India is trying to "address volatility" in the Indian rupee that has tumbled to record lows against the dollar in recent weeks, a government official said on Monday, amid concerns of a widening trade deficit and sell off of assets by foreign investors.

The rupee has plunged 6% against the dollar this year, weighed down by broad strength in the greenback and as investors retreated from the domestic share markets.

Meanwhile, India's trade gap touched a monthly record of $24.3 billion in May hurt by higher commodity prices.

"When oil prices are this high, obviously CAD (current account deficit) will go up. Last several years India has been bridging CAD with capital flows. This year there is headwinds on capital flows," the official who did not want to be named, told reporters.

As of 1013 GMT, the partially convertible rupee was trading at 78.95/96 per dollar, close to new record low it touched on Friday.

The official, however, said India's macro economic fundamentals remained strong and he was "fairly confident" that India would come out of "well" when the situation improved.

The official also said the government would stick to the fiscal deficit target of 6.4% of GDP for the 2022/23 financial year that started on April 1.

(Reporting by Manoj Kumar; Editing by Toby Chopra and Alison Williams)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting