Millennium Post

'RBI taking steps to check rupee slide'

Attributing the slide in rupee value to various domestic and global factors, finance minister Pranab Mukherjee on Sunday said the Reserve Bank of India (RBI) was taking steps to arrest the currency's depreciation.

'There are a lot of reasons for this (depreciation). There is demand and supply in the market. In the US, there is surplus investment. It used to be a safe haven,' he said.

'Europe used to be an important destination for exports, but demand there is uncertain,' he said, adding global recovery was 'poor and fragile' while oil prices were on rise.

India's fiscal deficit too is widening and is estimated to have touched 5.9 per cent of GDP in 2011-12.

'Because of the cumulative effect of all these reasons the price of rupee is falling down,' he added.

Mukherjee said the RBI was taking steps to check the depreciation in the Indian currency from time to time.

RBI recently indicated that it may sell dollars directly to oil companies to ease pressure on the currency.

Since early March, rupee has lost about 13 per cent against the dollar driven by a combination of deteriorating global risk sentiment and weak domestic fundamentals.
Next Story
Share it