Rupee below 83 not abnormal; currency fluctuation not exclusive to India: Finance Ministry official The rupee dipping below 83 to a US dollar is not abnormal and the fluctuation in currency rate is not exclusive to the Indian currency, a finance ministry official said, hoping that RBI’s inflation control steps will factor in exchange rate volatility. The rupee hit an all-time intra-day low of 83.16 to a US dollar on Thursday and settled at a record closing low of 83.10 on Friday. The fall in the rupee made imports on which India is dependent for meeting its oil, electronics and fertiliser, costlier, fuelling inflationary concerns. Asked if the fluctuation would impact inflation as imports will be costlier, the official said: “That is, of course, an issue but I’m sure the Reserve Bank will keep it under consideration when they take their decisions.” The official further said fluctuations in foreign exchange markets “are normal and nothing abnormal or exclusive to the Indian rupee”. “These things can also reverse as exchange rates are very volatile… It is too early to say that this rate will hold for a long time,” the official added. After appreciating for the most part of this year, the Indian rupee started depreciating this month as global investors reduced their exposure to emerging markets on expectations of higher interest rates in the US and deepening concerns over the Chinese economy. The rupee which was at 82.6 to a dollar as of December 2022 end, depreciated to an all-time closing low of 83.10 on Friday.
The launched works involve rehabilitating the Galgamuwa Railway Station and upgrading the railway line from Maho to Anuradhapura, including additional tasks. Another project is the second phase of track rehabilitation from Maho to Omanthai (128 kms), funded by a $318 million Indian Line of Credit.
Transport Minister Gunawardena praised the efforts of Indian company IRCON in Sri Lanka and called for more cooperation in the railway sector. State Minister Shantha Bandara and officials from the Sri Lankan Ministry of Transport attended the event.
Railways is a priority for Indian assistance in Sri Lanka, with over $1 billion invested under five Indian Lines of Credit. IRCON has been involved in Sri Lanks since 2009. It has contributed to the modernisation of Sri Lanka Railways by reconstructing the entire railway line network in the Northern Province (253 Km) and upgradation of the Southern line (115 km), as well as improving safety through advanced signalling and telecommunication systems.
Despite Sri Lanka’s debt standstill in April 2022, India’s support under various Lines of Credit has continued.
(With PTI inputs)
Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd and JP Morgan India Pvt Ltd are the book running lead managers to the issue.
The equity shares of Blue Jet Healthcare are proposed to be listed on the BSE and the NSE.