The ongoing political crisis in Ukraine will not affect the Indian currency, which will continue to remain range bound, said Economic Affairs Secretary Arvind Mayaram.
“I don’t think we should worry about such things (geopolitical tension in Ukraine). The Indian economy is very stable...the rupee will remain range bound,” he said on the sidelines of a conference.
The rupee lost 11 paise to 62.15 against the dollar in early trade today as the US currency appreciated against the euro and other currencies overseas.
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The rupee had tumbled 29 paise, its biggest loss in two weeks, to close at 62.04 against the dollar yesterday, hit by global risk aversion as the Russia—Ukraine conflict threatened to snowball into a full—fledged war.
Safe—haven driven fresh dollar demand from importers amid escalating tension between Russia and Ukraine weighed on emerging market currencies, including India’s rupee.
The dollar index was up 0.10 per cent against a basket of six major global rivals. Russia’s rouble was down 9 per cent.
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The rupee touched a historic low of 68.85 against the dollar in August last year.