Govt to take steps to stem Indian rupee's fall: Raghuram Rajan - Indian Express

PTI : Tue Jun 11 2013, 21:58 hrs A bank employee checks a 500 rupee note at a counter of Yes Bank's microfinance division in Mumbai. (Reuters) The Finance Ministy today said it will take steps to increase foreign investment flows into the country to strengthen rupee and the regulators will act at appropriate time to contain the fall in domestic currency that touched a record low of 58.96 to a dollar. "We will continue to implement measures to ensure that portfolio investor inflows are enabled and encouraged and some of these measures will be announced very shortly. "In the coming weeks, we will recommend to the Cabinet policies to enhance FDI limits on number of areas all this will help not just in short-term objective of financing the CAD safely but also in the longer term objective of ensuring sustainable growth," Chief Economic Advisor Raghuram Rajan told reporters here. The exchange rate has depreciated by 5.5 per cent cent since January 1 and over 2.5 per cent in last two trading session. The rupee is currently trading at around --- to a dollar. "There has been some volatility in the financial markets in the last few days. The government, RBI and Sebi are watching the market development and each one will take action as warranted," Rajan said. He said the depreciation is rupee is mainly on account of outflow of FII funds from debt instruments and trade high trade deficit. Since May 1, outflows from debt instruments stood at USD 486 million, at the same time equity inflows on net atood at USD 4.16 billion. So since May 1, the portfolio inflow into India has been USD 3.7 billion. "Despite these reasons debt outflow and larger trade deficit in May-- things are turning around," he said. ALSO READ RBI steps in as Indian rupee threatens to breach another record low of 59 India to take warranted steps to stem Indian rupee fall: Raghuram Rajan RBI's hidden hand brings Indian rupee off record low Not unduly worried, rupee to stabilise in 3-4 days: FinMin 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=AFQjCNFQdNfBpnp0jZV-2CuCSQtsE3yBPA&url=http://www.indianexpress.com/news/govt-to-take-steps-to-stem-indian-rupees-fall-raghuram-rajan/1127727/

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