Don't panic over the Indian rupee, says Raghuram Rajan - Indian Express

Press Trust of India : Thu May 23 2013, 18:39 hrs < /div> We are not the worst, but we are also not the best either in terms of depreciation: Raghuram Rajan Photo by Reuters Even as rupee fell below 56-level against US dollar today top adviser to Finance Ministry Raghuram Raja today said there is no need to panic as RBI takes decisions on whether to intervene in forex markets or not to stabilise the local currency. "We are not the worst, but we are also not the best either in terms of depreciation... I won't say it is out of sync with what is happening in other countries...There is no panic-based need for new measures (on rupee)...I don't see any reason for apprehension," Chief Economic Adviser in the Finance Ministry Raghuram Rajan told reporters here. He said euro has also depreciated against the dollar and so is Japanese yen. The rupee today fell below 56-level against dollar during intra-day amid the US currency's sustained gains against major rivals overseas. Rajan said the Reserve Bank of India (RBI) takes decision on market intervention with regard to rupee movement. "I think in terms of decision how much to buy, those decisions RBI takes...I think a stable rupee is something that is justified," he said. Referring to the current account deficit (CAD), he said India got USD 5 billion FII investment in May alone. "...so we are able to finance CAD quite comfortably. In that sense new measures increase our ability to get better financing, we keep looking at it," Rajan said, adding more steps were being contemplated to further ease foreign inflows. He informed that government was talking to foreign pension funds and sovereign wealth funds and listening to their concerns on investments. The government has recently rationalised withholding norms on foreign investments. Rajan said government would do everything to maintain stable and sustainable financing of CAD. He further said the government would consider increasing the limit for foreign investments in government securities once they reach the ceiling of USD 25 billion. ALSO READ State Bank of India profit in quarter plunges 18%, NPAs surge, shares drop Indian rupee at a new 6-month low of 55.83, down 37 paise vs US dollar Indian Rupee snaps initial gain vs US dollar, down 4 paise ING tests waters to exit ING Vysya, approaches banks to consider deal Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGLPSl3KTtzJ95HmQKHZWIYY76GYw&url=http://www.indianexpress.com/news/dont-panic-over-the-indian-rupee-says-raghuram-rajan/1119689/

Put the internet to work for you. via Personal Recipe 2910127