RBI to manage volatility in exchange rateNovember 22nd, 2011 - 7:09 pm ICT by IANS
Hyderabad, Nov 22 (IANS) The Reserve Bank of India will manage volatility in the exchange rate but it hopes that the rupee would recover once the European crisis is resolved, the central bank’s Governor D. Subbarao said Tuesday.
“Our policy remains the same which is to manage volatility in exchange rate and to ensure that exchange rate volatility does not impair on macro-economic stability,” he told reporters on the sidelines of a conference here.
“The exchange rate movement that we have seen over the last couple of weeks, particularly in the last 3-4 days is being driven by global dynamics, and clearly to what extent it moves and in which direction will depend on credible resolution of external situation, particularly the sovereign debt problem in Europe,” he said.
“We expect that the reverse adjustment will take place when the European situation resolves itself,” he said on a day when the rupee fell to an all-time low.
The rupee depreciated to Rs.52.73 per US dollar on Tuesday.
Finance Minister Pranab Mukherjee said Tuesday in New Delhi that RBI’s intervention in the forex market will not arrest the slide as foreign institutional investors’ pullout and global reasons were behind the depreciation.
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- India's forex reserves slump by $5.71 billion - Nov 27, 2011
- Weak rupee will hit corporate borrowers hard - Nov 22, 2011
- Rupee hits record low, government blames global economic turmoil (Roundup) - Nov 22, 2011
- Rupee hits a new low of 55.47 against dollar - May 22, 2012
- Rupee falls for eight straight day - Nov 23, 2011
- RBI governor meets Mukherjee ahead of policy review - Apr 03, 2012
- RBI may take steps to prevent rupee's downward spiral - Dec 03, 2011
- Rupee falls to record low, Mukherjee blames global conditions - Nov 22, 2011
- Rangarajan for RBI intervention to check rupee fall - Nov 19, 2011
Tags: bank of india, debt problem, depreciation, economic stability, european situation, exchange rate volatility, external situation, finance minister, foreign institutional investors, forex market, global dynamics, global reasons, New Delhi, pranab mukherjee, pullout, reserve bank of india, rupee, sidelines, sovereign debt, subbarao