For Quick Alerts
For Daily Alerts

Rupee at current level is well corrected: Rangarajan

By Super
Rupee at current level is well corrected: Rangarajan
New Delhi: The rupee at the current level is "well corrected" and it will gain further with stability returning to the forex market, Prime Minister's Economic Advisory Council Chairman C Rangarajan on Friday said, amidst volatility in the exchange value of the local currency.

The rupee has recovered to trade at 63 level after hitting its life-time low of 68.85 towards August-end. "The rupee at the current level is well corrected. Stability is returning to the foreign exchange market. As capital flows return and as CAD begins to fall, this tendency will strengthen," Rangarajan said while releasing Economic Outlook for 2013-14.

"Ultimately the value of rupee depends upon the level of the current account deficit, the level of capital flows and what is happening in the rest of the world. Therefore, it is a combination of factors that ultimately impact the value of rupee," he said.

The domestic currency jumped 425 paise in five straight sessions starting September 7 on optimism sparked by steps announced by RBI Governor Raghuram Rajan, who took over on September 4, to rescue the battered financial markets.

Asked about the impact of likely tapering of quantitative easing, if announced, by Fed next week, Rangarajan said, "I believe that foreign exchange markets have already digested it. All the impact we have seen is in terms of what the Fed will do."

Stating that there is no unique way for determining what the appropriate value of the rupee, he said many steps have been taken recently in order to stabilise the rupee and allay the fears of investors and to restore the confidence in the economy. The rupee was trading at 63.4 level at closing stages of today's trade at Inter-bank Foreign Exchange Market.


Story first published: Saturday, September 14, 2013, 9:39 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more