Comments
As rupee fluctuated in the market, the Reserve Bank of India today said it is not targeting any specific exchange rate and will use all instruments to manage the volatility.
“We do not have an exchange rate target ... We try to manage volatility in the currency movement ...,” the RBI Governor, D. Subbarao, told reporters here as the rupee traded at 60.28 to a dollar in the afternoon.
”... We employ instruments available to us in order to manage volatility,” Subbarao said.
The rupee had touched historic low of 60.76 level against the dollar on June 26 due to heavy capital outflows amid fears of early withdrawal of US monetary stimulus.
A high Current Account Deficit is also putting pressure on the value of rupee. CAD touched a record high of 4.8 per cent of the GDP in the 2012-13 financial year due to high imports, including that of gold.
Both the Government and the RBI have taken steps to contain gold imports.
Measures have also been taken to enhance FII inflows in addition to easing norms for domestic companies to raise funds from abroad.
Subbarao’s comments come after the rupee touched its record low of 60.76 to a dollar on June 26.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.