‘Measures taken by Govt will turn Investor sentiment in favour of Re’
2 July 2013 10:24 PM GMT
Amid concerns over declining rupee, Finance Minister P Chidambaram on Monday said that the currency will find its level as steps being taken by the government to contain fiscal and current account deficits will improve investor sentiments.
‘We are committed to contain the fiscal deficit within the target and we are addressing how to finance the current account deficit. Sentiment will turn in favour of the rupee.I think rupee will find its level,’ he said.
The rupee had touched historic low of 60.76 level against the dollar on 26 June due to heavy capital outflows amid fears of early withdrawal of US monetary stimulus.
Both the government and RBI have taken steps to contain gold imports, which is putting pressure on the CAD. Measures have been taken to enhance FII inflows in addition to easing norms for domestic companies to raise fund from abroad.
The Finance Minister, however added there is ‘no good and bad value’ that one could attach to the price of the rupee.
‘It’s a price. Rupee is bought and sold. Dollars are bought and sold there is a price. It’s also a function of supply and demand. It’s also influenced by sentiment,’ he said.
‘We are committed to contain the fiscal deficit within the target and we are addressing how to finance the current account deficit. Sentiment will turn in favour of the rupee.I think rupee will find its level,’ he said.
The rupee had touched historic low of 60.76 level against the dollar on 26 June due to heavy capital outflows amid fears of early withdrawal of US monetary stimulus.
Both the government and RBI have taken steps to contain gold imports, which is putting pressure on the CAD. Measures have been taken to enhance FII inflows in addition to easing norms for domestic companies to raise fund from abroad.
The Finance Minister, however added there is ‘no good and bad value’ that one could attach to the price of the rupee.
‘It’s a price. Rupee is bought and sold. Dollars are bought and sold there is a price. It’s also a function of supply and demand. It’s also influenced by sentiment,’ he said.
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