RBI taking steps to check rupee slide, says Pranab

Kolkata: Attributing the slide in rupee value to various domestic and global factors, Union Finance Minister Pranab Mukherjee today said the Reserve Bank 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 told reporters here.

Reuters

"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 percent 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. Besides, it has already taken steps to curb speculation in the forex market and increase the inflow of foreign currency.

Since early March, rupee has lost about 13 percent against the dollar driven by a combination of deteriorating global risk sentiment and weak domestic fundamentals.

The rupee had hit an all-time high of 56.38 on Thursday.

On Friday, the rupee gained 27 paise to close at 55.37 after RBI intervened on currency breaching the 56-level in early trade.

PTI


Updated Date: Dec 20, 2014 10:23 AM

Also Watch

IPL 2018: Royal Challengers Bangalore eye revival against Chennai Super Kings as 'Cauvery Derby' comes back to life
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Tuesday, April 24, 2018 It's A Wrap: Beyond the Clouds stars Ishaan Khatter, Malavika Mohanan in conversation with Parul Sharma
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See