'Rupee depreciation against major world currencies good for economy': Rajiv Kumar

New Delhi: The rupee depreciation against major world currencies is good for the economy as it encourages labour-intensive exports from India, increases foreign exchange earnings and generates more jobs, former Niti Aayog Vice Chairman Rajiv Kumar said on Tuesday.

The eminent economist further said it is high time that a so-called 'strong rupee' is seen as the symbol of economic strength.

"Nothing to worry about rupee depreciating against major world currencies. In fact, it is good for the economy as it encourages labour-intensive exports from India, increases foreign exchange earnings and generates more jobs," Kumar said in a post on X.

The rupee hit the psychological 90-a-dollar level in intraday trade before settling 43 paise down at an all-time low of 89.96 against the US dollar on Tuesday, largely owing to continued short-covering from speculators and sustained importer demand for the American currency.

"The macho rupee syndrome should be discarded immediately. Let’s try and change this public narrative, which is detrimental to the country," he added.

At the interbank foreign exchange market, the rupee opened at 89.70, then lost its ground and fell to a record intraday low of 90.00 against the US dollar, down 47 paise over its previous close.

At the end of trade on Tuesday, the rupee settled at a record low of 89.96 against the greenback, down 43 paise over its previous close.

On Monday, the rupee depreciated by eight paise to close at 89.53 against the US dollar.