Amid rising concerns over the ongoing political crisis in Ukraine, Economic Affairs Secretary Arvind Mayaram has asserted that current crisis in Ukraine will not affect the Indian currency, which will continue to remain range bound. It was expected that emerging markets like India could see higher capital outflows to safe haven currency dollar over fears that the Russia-Ukraine issue has potential to result in a full-fledged war.
Arvind Mayaram further added that fundamentals of Indian economy were stable and there was no need to worry about such geopolitical tension in Ukraine. The dollar index was up around 0.10 percent against a basket of six major global rivals since the start of Russia-Ukraine conflict.
Presently, Indian rupee is trading at around 61.80 per dollar. In the previous year, the domestic currency has depreciated over 20 percent and touched a historic low of 68.85 against the dollar in August’13 on account of high gold imports and high capital outflows owing to the tapering of the US Fed's bond buying programme.