India says rupee can withstand international shocks

WASHINGTON (Reuters) - The rupee's stability reflects the strength of the Indian economy and the currency should be able to withstand possible international events such as a rate hike by the U.S. Federal Reserve, Indian Finance Minister Arun Jaitley said on Thursday.

"By and large the strength of the Indian economy is also reflected in the fact that (the) rupee has remained relatively within the stable range, and we do believe that the rupee will find its real value and real strength in the international currency market," he said at a seminar in Washington.

He noted that even when several currencies had faced a serious challenge, the rupee was relatively more stable against the dollar and rose against most other currencies. He said the depth and size of the Indian market meant its ability to withstand such shocks was far stronger.

"I wouldn't call it threats or risks if we continue with our own internal ability to carry on with our own reform process," he said. "And as long as we continue that, I think our ability to absorb various international possible scenarios would be reasonably high."

(Reporting by Randall Palmer; Editing by Andrea Ricci)