“We are relatively better placed. We are not a closed economy. We are part of the globalised world. So, we will be impacted (by global developments),” Sitharaman said on the sidelines of the launch of Business Reforms Action Plan 2020 report. Her statement assumes significance in the wake of the rupee breaching 79 per dollar mark for the first time on Wednesday after hitting a series of lifetime lows this month. A weaker rupee fuels inflation because India imports around 85% of its oil needs.

Emerging market currencies including the Indian rupee have been falling against the dollar amid geopolitical tensions in the wake of Russia’s invasion of Ukraine, high global crude prices, sustained inflation, and central banks worldwide adopting hawkish monetary policy approach.

The Reserve Bank of India’s monetary policy committee had last month raised the repo rate by 40 basis points in an off-cycle meeting.

Last week, RBI deputy governor Michael D Patra said the central bank will not allow “jerky movements” of the rupee while emphasising that the Indian currency has witnessed least depreciation in recent times.