FM Sitharaman on Rupee-Dollar Exchange Rate, Gold Demand, and Bond Yields

• Finance Minister Nirmala Sitharaman stated that the rupee-dollar exchange rate should be viewed in the context of economic strength, not indifference.
• She emphasized that currency issues arise when the underlying economy is weak, not due to personal comfort.
• The rupee gained 42 paise to close at 91.51 against the US dollar, influenced by declining crude oil prices and RBI intervention.
• Sitharaman attributed gold demand to global uncertainty and its role as a safe-haven asset, rather than domestic policies.
• She acknowledged rising bond yields as an evolving situation, noting their impact on government borrowing and the need for further study.

Why It Matters: FM Sitharaman links rupee value, gold demand, and bond yields to economic fundamentals and global uncertainties.