India hopes to cut losses from rupee fall with reserves 'firepower'
Updated : June 29, 2018 12:44 PM IST
India believes the current slide in the rupee will not be prolonged as it has adequate "firepower" of foreign exchange reserves to deal with the current volatility, a senior finance ministry official said.
The volatility is being driven by global factors, including proposed US sanctions on Iran and the mismatch in demand and supply of oil, said Subhash Chandra Garg, the economic affairs secretary in the finance ministry.
Policy makers are also worried that the ongoing trade war between the United States and China could adversely impact exports from emerging market economies, including India, while discouraging capital inflows - putting pressure on the rupee.
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