Pranab blames rupee fall on commodity volatility
04 May 2012
The volatility in global commodity prices is playing havoc with India's balance for payment position, which again leads to depreciation in the rupee value, finance minister Pranab Mukherjee said today.
He said this has affected several Asian countries with the exception of China, where the currency is beyond BoP stress.
''In several Asian countries, excepting China, the BoP is under stress, which leads to currency depreciation,'' Mukherjee told reporters on the sidelines of the 45th annual meeting of the Asian Development Bank Board of Governors in Manila today.
He also said the country has to correct its fiscal imbalances against the backdrop of the rating agency Standard and Poor's downgrading the country's sovereign rating outlook.
The finance minister, who will assume the chairmanship of ADB tomorrow, said the global issues which have a bearing on the Asian economies would be discussed at the meeting.
The Indian rupee has suffered sharp losses by over 15 per cent in the last few months, leaving a destabilizing impact on the country's trade, which mainly comprise crude oil.
.webp)
