Pranab worried about falling rupee
21 May 2012 1:54 AM GMT
The finance minister Pranab Mukherjee said on Sunday that the steep fall in the rupee was a matter of great concern and the Centre was trying to resolve the situation.
‘It is a matter of great concern. We are watching the situation. The Centre is not [sitting] idle. We are trying to resolve [the issue],’ Mukherjee said.
‘This is due to the eurozone crisis,’ he said.
Mukherjee added, ‘There is also currency crisis in emerging markets, including Brazil.’
At the forex market, the domestic currency has been falling against the US dollar over the past few days.
On Friday, in early trade, the rupee threatened to breach the 55-level as it slumped to 54.91 against the American currency. It is the fresh all-time low the rupee hit in the third straight session, as copious fund outflows continued amid eurozone worries.
Dealers said that strong dollar demand from importers, mainly oil refiners, on expectation of further strengthening of the dollar, caused the rupee’s fall.
However, the Reserve Bank of India had stepped in and stemmed the rupee’s slide. Observers believe that the state of the Indian currency and the country’s projected growth numbers do not correspond.
‘It is a matter of great concern. We are watching the situation. The Centre is not [sitting] idle. We are trying to resolve [the issue],’ Mukherjee said.
‘This is due to the eurozone crisis,’ he said.
Mukherjee added, ‘There is also currency crisis in emerging markets, including Brazil.’
At the forex market, the domestic currency has been falling against the US dollar over the past few days.
On Friday, in early trade, the rupee threatened to breach the 55-level as it slumped to 54.91 against the American currency. It is the fresh all-time low the rupee hit in the third straight session, as copious fund outflows continued amid eurozone worries.
Dealers said that strong dollar demand from importers, mainly oil refiners, on expectation of further strengthening of the dollar, caused the rupee’s fall.
However, the Reserve Bank of India had stepped in and stemmed the rupee’s slide. Observers believe that the state of the Indian currency and the country’s projected growth numbers do not correspond.
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