Subbarao, who met finance minister P Chidambaram and top officials on Thursday, said the RBI does not target a specific level of the rupee, said the RBI governor, adding the current economic situation requires structural measures. The rupee closed at 64.55/56 a dollar. The Indian rupee has been worst performing among emerging market currencies shedding more than 16% since May amid strong signs of recovery in the US that is prompting global investors to withdraw money from countries like India. Rupee tumbles past 65, FM says growth will pick up soon Rupee breaches 65-mark against dollar, 10 reasons why our currency is sinking.No immediate threat of rating downgrade: Fitch Rupee singes, companies put hiring plans on backburner Experts have warned the rupee is fast hurtling towards a scary 70 to a dollar. The RBI has taken a slew of measures including new foreign exchange controls restricting the amount of dollars Indian companies’ and individuals can spend overseas and banned people from buying property in foreign countries, spooking investors and drawing comparisons with a throw-back to the pre-1991 licence-raj. Subbarao said that India’s foreign exchange reserves at $278 billion, was adequate to manage the current volatility in the currency market. “I believe our forex reserves are adequate to manage the current situation,” he told reporters.
Posted on: Wed, 28 Aug 2013 12:52:37 +0000