Rupee depreciation will not cause inflation: NITI Aayog

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New Delhi [India], Aug 21 : Rajiv Kumar, the vice chairman of NITI Aayog, on Tuesday said depreciation of the Indian Rupee will not result in inflation of prices and that it does not symbolise a slump in India’s reputation in international markets.
“It is wrong to say that a fall in rupee value symbolises depreciating reputation in the market. Value of a country falls or rises depending on the success rate of the country, number of poor people and the growth of employment in the country,” Kumar said.
“Value of rupee is like temperature in thermometer that falls and rises based on certain parameters. It’s wrong to say that a fall in rupee value will lead to inflation. Value of rupee is just a price, depending on supply and demand,” he added.
Meanwhile, informed sources in the Finance Ministry said that the Rupee is on the same level as was in 2013, adding that it has not depreciation in the last four year.
“Look at all the emerging market currency in 2013 and 2018, you will find the difference. All the currencies against the dollar are depreciating. There will be short-term pressure on current account deficit due to Rupee‘s depreciation. We are in a comfortable position as far as forex reserves are concerned,” the source said.
On Tuesday, the Indian Rupee hit a record low of 70.08 against the dollar, following which it further depreciated to 70.22 on Thursday. The economic crisis in Turkey, which has seen a plunge in the value of the Turkish Lira, is being cited as the primary cause for the depreciation of the Indian currency.