Global developments are being monitored closely, says Arun Jaitley

"India's foreign exchange reserves are comfortable by global standards, and sufficient to mitigate any undue volatility in the foreign exchange market", says Jaitely

Allaying fears of industry and investors over global worries, Union Minister Arun Jaitley on Wednesday said the Centre was monitoring the global situation closely, and stressed that India’s macro-economic fundamentals were strong.

“Recent developments relating to Turkey have created global risk aversion towards emerging market currencies, and the strengthening of the dollar. However, India’s Macro fundamentals remain resilient and strong,” Jaitley said on Twitter and Facebook.

“India’s foreign exchange reserves are comfortable by global standards, and sufficient to mitigate any undue volatility in the foreign exchange market. The developments are being monitored closely to address any situation that may arise in the context of the unsettled international environment,” he said. 

Jaitley attended Parliament for a day last week, and is expected to return to the Finance Ministry in North Block this week, after his kidney transplant in May.

On Tuesday, the rupee crashed to its lifetime low of 70.09 against the US dollar on global concerns over Turkey's economic woes, which have affected various emerging markets. Economic Affairs Secretary Subhash Garg has said the Reserve Bank of India has spent around $23 billion to intervene and support the rupee. When asked what if the currency falls to 80 versus the dollar, Garg said it would not be a concern provided all other currencies depreciate in the same range.