The Centre blamed factors such as the soaring crude oil prices for the problem.
New Delhi: The Central government, in a written reply in Parliament on Tuesday, listed reasons for the depreciation of the Indian rupee against the dollar. It blamed the US-China trade war, US rate hike, and the coronavirus pandemic for the falling rupee. The government also held the Russia-Ukraine conflict responsible for the rupee crossing 80 against the dollar.
"Various global factors have contributed to the depreciation of the Indian Rupee over the years which include the US-China trade war in 2018, the rate hike by the US Federal Reserve in 2018 and Covid-related disruptions in 2020," the Ministry of Finance said in the reply.
"During the current year, factors such as the Russia-Ukraine conflict, soaring crude oil prices, and the tightening of global financial conditions are the major reasons for the depreciation of the Indian Rupee against the US Dollar," it added.
Meanwhile, Finance Minister Nirmala Sitharaman said on Tuesday that the Indian rupee has strengthened against the British Pound.
In a written reply, she said since the British Pound has weakened more than the Indian rupee, the Indian currency has strengthened against the Pound in 2022.
The depreciation of a currency is likely to enhance the export competitiveness, which in turn impacts the economy positively while it is also likely to impact the imports by making them costlier.
In reply to another question, Sitharaman said GST rates or rate slabs applicable on goods and services are prescribed on the recommendations of the GST Council. GST Council has not made any recommendation for change in the existing GST rate slabs so far, she said, adding that a Group of Ministers (GoM) has been constituted by the council in its 45th meeting held on September 17, 2021.
With inputs from PTI
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 "Falling rupee against dollar (File)")
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