Developments in Greece could have implications on international currency market: Sitharaman

The day Indian chief economic advisor (CEA) tried to soothe the nerves of the investors, dismissing the possibility of any material impact on the Indian economy from the developments in Greece, anticipating some impact on the rupee from investors pulling out in fear, the Commerce and Industry Minister Nirmala Sitharaman has supported the view and said that the government is “very closely” monitoring the developments in Greece as that could have implications on the international currency market. Sitharaman stated that 'I think the Greece affair is going to play out for a few more days and we will certainly have to watch that...India's foreign exchange reserves are comfortable. The RBI and the government are very closely monitoring the developments. I think we have to be alert and keep watching what is happening.' The Commerce and Industry Minister though said that is too early to gauge the impact on the domestic currency as it is euro vs dollar taking a fluctuation with euro resulting in further weakening and all this is going to have an implication on the international currency market. Sitharaman also said that negotiations of India-EU free trade agreement will not get impacted by the development as chief negotiators have been mandated. India and the European Union are expected to resume negotiations in August on the proposed free trade agreement for boosting two-way commerce and investment.