Rupee watchdog centre, no restrictions on non-essential imports: Piyush Goyal | Today’s news
Union Commerce Minister Piyush Goyal said on Thursday that the government is closely monitoring the rupee and considering several measures to manage the ongoing global volatility.
“We are monitoring the situation. All the various arms of the government are working as a team. Several steps are being considered. The situation is quite challenging globally, but we have the confidence and courage to believe that even in this challenging time we will emerge victorious,” Goyal said.
Since the beginning of 2026, the rupee has weakened by almost 7% against the US dollar, mainly due to increased oil prices following the US-Iran war. The home currency opened at 96.30 per dollar on Thursday, recovering from the previous session’s close of 96.82.
Some support for the rupee came after international oil prices eased overnight. Brent crude fell about 5% to near $105 a barrel after US President Donald Trump said talks aimed at securing peace with Iran were coming to an end. But he also warned that more strikes could not be ruled out if the talks break down, leaving global markets cautious.
As part of a measure aimed at stabilizing liquidity conditions, the Reserve Bank of India has scheduled a three-year maturity buy-sell swap auction of $5 billion in rupees on May 26. The operation is expected to infuse rupee liquidity into the banking system and help curb excessive volatility in the currency market.
No import restrictions
Responding to questions on whether the Center was considering curbing non-essential imports to ease pressure on the rupee and the trade deficit, Goyal said there were no such plans at present.
“Currently there are no such plans of this nature, but of course we have urged all citizens of India to be more aware of their spending on products that are dependent on imports,” he said.
He added that many Indians responded positively to Prime Minister Narendra Modi’s call to promote domestic production and reduce dependence on imported goods.
“It is very natural that every Indian who trusts PM Modi has taken note and is helping the country in every little way by his own actions. I am really proud of every Indian who has taken PM Modi’s call to heart and is contributing to nation building,” Goyal said.
Volatility persists
Meanwhile, economists said the rupee remains vulnerable due to lingering global uncertainty and volatile commodity markets. Madan Sabnavis, Chief Economist at Bank of Baroda, said the currency is approaching a psychologically significant level.
“The rupee is almost level ₹97/$ and it’s hard to predict which way it will go. Several factors drive the rupee and in this study we look at some of the quantifiable variables that affect the exchange rate. For this purpose, a short econometric exercise is conducted,” said Sabnavis.
“Interestingly, it has been observed that if the rupee is in a certain range for five sessions, it could enter a higher range. This is an observation rather than a conclusion. We hope you find this study interesting,” he added.
