Finance Minister Nirmala Sitharaman said that the rupee has outperformed other emerging market currencies. The minister's statement comes days after the rupee fell to an all-time low of 82.69. Explaining the decline, Mrs. Sitharaman said it was due to the increasingly strong dollar. He said that the rupee is not depreciating.

"I will look at it, not Rupee sliding and look at it as dollar strengthening incessantly," the finance minister said at a press briefing during her US visit.

He said that the Reserve Bank of India (RBI) is trying to ensure that there is no excessive volatility and does not intervene in the market to fix the value of the Indian currency.

 Responding to ANI on the steps being taken to combat this slide, she said, “So it is clear that all other currencies are strengthening against the USD. It is true that the Indian rupee must have resisted the rise in the USD to USD exchange rate. The Indian rupee has fared better than many other emerging market currencies.

"The RBI's effort is to ensure that there is no excess volatility, it is not intervening in the market to fix the value of the rupee. Being flexible is the only exercise that the RBI is involved in and I said this before the rupee a. will find out his position," she said. Experts say the latest drop in prices is caused by negative global developments, starting with geopolitical tensions caused by Russia's invasion of Ukraine earlier this year.

The war drove up commodity prices, leading to inflation in developed countries, which prompted the US Fed to raise interest rates. This caused the capital flight of the United States, leading to the manifestation of deflation.