New Delhi: With the rupee appreciating by as much as four per cent over a fortnight in March-April, the Federation of Indian Chambers of Commerce and Industry (FICCI) has voiced concern at the volatility in the rupee exchange rates, saying such uncertainties should be avoided.

FICCI President Y.K. Modi said that sharp fluctuations in the short term created problems of adjustment for the domestic industry. Against the backdrop of the rupee's volatility he welcomed the new market stabilisation bond scheme, which he felt could be an effective instrument in smoothening out the fluctuations. He said that the issue was discussed in detail at a meeting of the FICCI steering committee on Monday.

Modi also stressed the need to further reduce interest rates on credit to help the industry reduce costs.