With the rupee falling to a lifetime low, the Finance Minister, Mr Pranab Mukherjee, has said that RBI intervention in the forex market will not arrest the slide as FIIs’ pullout and global reasons were behind the depreciation.
“RBI intervention (in the forex market) will not help,” he told reporters here today.
The Finance Minister said the Indian currency was depreciating because of the withdrawal of foreign institutional investors (FIIs) from the domestic equity market and global uncertainty was adding to the volatility.
The rupee has been weakening for quite some time and depreciated to a lifetime low of Rs 52.73 per US dollar in early trade at the Interbank Foreign Exchange market today amid sustained demand for the American currency from banks and importers.
Dollar’s gains against other currencies overseas also put pressure on the Indian rupee.