Chidambaram meets Rajan as Re plumbs new low

Our Bureau Updated - August 21, 2013 at 09:34 PM.

P. Chidambaram

Finance Minister P. Chidambaram on Wednesday met Reserve Bank of India Governor-designate Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram to discuss the domestic currency woes.

The meeting came on a day when the rupee hit an all-time low of Rs 64.51 against the US dollar during intra-day trade.

The domestic currency, which breached Rs 64 against the dollar for the second consecutive day, closed at Rs 64.12 on Wednesday. This meeting happened a day after the RBI announced plans to buy long-dated government bonds so as to ease the earlier cash-supply curbs that were rolled out to stem the rupee plunge.

The central bank also eased marked-to-market provisioning norms for banks to cushion the adverse impact of spike in 10-year G-sec yields.

Rajan, who was Chief Economic Advisor to the Finance Ministry since 2012, will take over as RBI Governor on September 5.

srivats.kr@thehindu.co.in

Published on August 21, 2013 16:04