RBI to act if rupee fall continues: Pranab
24 Sep 2011
The Reserve Bank of India (RBI) says it would actively intervene in the currency market if the declining trend in the value of the rupee goes beyond a level, finance minister Pranab Mukherjee said today.
Speaking to reporters in Washington, the finance minister said he had discussed the issue with RBI governor D Subbaro. RBI, he said, would decide on whether intervention in the currency market is needed and, if so, up to what extend should the central bank support the rupee.
Mukherjee and the RBI governor are in the US to attend the annual IMF-World Bank meeting and the meetings of the Group of 24 and BRICS group countries.
The rupee has declined nearly 10 per cent against the dollar so far this year. On Friday, the closing day of the week, the Indian currency was down 34 paise at 49.82 against the US dollar, the lowest level in nearly 28 months.
The rupee is being hammered as FIIs repatriate sale proceeds of Indian stocks and domestic oil companies pay out billions of dollars in their rising crude bills.
Mukherjee said the government and the RBI are closely monitoring the situation and would act whenever necessary.
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