New Delhi, July 21 -- The government on Tuesday rejected concerns that the weakening of the Indian rupee against the US dollar reflects poor health of the economy, saying the country's macroeconomic fundamentals remain strong and economic activity continues to show resilience.

In a written reply to an unstarred question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said the exchange rate of the Indian rupee is influenced by a number of domestic and global factors, including movements in the Dollar Index, capital flows, interest rates, crude oil prices and the current account deficit.

He stated, "Various domestic and global factors influence the exchange rate of the Indian Rupee (INR), including movements in the Doll...