Chief Economic Adviser V. Ananth Nageswaran said that the rupee is being managed in a way that reflects the fundamentals of the economy.
Chief Economic Adviser V. Ananth Nageswaran said that the rupee is being managed in a way that reflects the fundamentals of the economy.
Chief Economic Adviser V. Ananth Nageswaran said on September 12 that India is not protecting the rupee reserve Bank of India (RBI) is taking necessary steps to ensure that the rupee movement is gradual and in line with the market trends.
Shri Nageswaran further said that the rupee is being managed in a manner that reflects the fundamentals of the economy.
He said at an event in New Delhi, “India is not protecting the rupee.
Fall in forex reserves in India worrying, inflows slow: Economist
In August, the Indian rupee had hit an all-time low of 80.15 against the US dollar. It is currently hovering at the level of 79.15 against the US currency.
“The RBI is ensuring that the direction in which the rupee is moving in line with the market trends is gradual and does not burden the importers or exporters,” Mr. Nageswaran said.
On the fall in forex reserves, he said, “Global risk aversion prevents capital inflows. Naturally this is the case.” [foreign] RBI data shows that the country’s foreign exchange reserves declined by $ 3.007 billion to $ 561.046 billion in the week ended August 26.
In the previous week ended August 19, reserves fell by $6.687 billion to $564.053 billion.
According to the weekly statistical supplement released by the Reserve Bank of India, the fall in reserves during the reporting week ended August 26 was on account of decline in foreign currency assets (FCA), a major component of overall reserves and gold reserves. on 2 september
Responding to a question on the rise in inflation in August, he said the rise in prices was also partly due to the base effect. “And, I think the market is reading the sowing data as an indication of the future … which is probably wrong.
“So, in that sense, I think the month-on-month spike is likely to moderate,” Mr. Nageswaran said. According to government data, retail inflation rose to 7% in August from 6.71 per cent in July.