Economists say that many currencies have collapsed in global exchange after the US Federal Reserve has tightened its monetary policy. Chief Economic Adviser (CEA) V Anantha Nageswaran said the rupee has depreciated less against the US dollar than major global currencies such as the euro, British pound and Japanese yen. He added that although there was a slight decline, it was moderate. Finance Minister Nirmala Sitharaman stated that the current situation at the international level has been created by global problems such as the Ukraine crisis, soaring fuel prices and tensions in the global economy. RBI said it will boost investments by increasing import duty on gold and announcing monetary policies.
Senior financial adviser Anantha Nageshwar said that when the Federal Reserve, the main banking system of America, tightens the monetary policy, it is natural for such changes to occur in the exchange rate. Nirmala Sitharaman said that currencies such as the British pound, Japanese yen and euro were weaker against the US dollar than the Indian rupee, which led to the strengthening of the Indian rupee. The market ended on Tuesday at 80 against the dollar. The Japanese yen, British pound etc. are also facing a decline against the dollar.