The finance ministry's economic report card attributes the depreciation of the rupee to external factors and states that macroeconomic fundamentals are strong. The rupee weakened in 2024 due to the strengthening of the US dollar and geopolitical tensions. However, in the first nine months of FY25, the Indian currency depreciated by only 2.9%, performing better than other currencies. The report also highlights that India's reserves are adequate and its current account deficit narrowed slightly to 1.2% of GDP in Q2 of FY25.