RBI chief says not in favour of de­valu­ing ex­change rate

The Pak Banker - - COMPANIES/BOSS -

Re­serve Bank of In­dia Gov­er­nor Raghu­ram Ra­jan said on Mon­day he was not in favour of de­valu­ing ex­change rates to boost eco­nomic growth, sig­nalling In­dia will not join other coun­tries such as China or Ja­pan in push­ing down their cur­ren­cies.

"I per­son­ally feel sus­tained de­val­u­a­tion is nei­ther fea­si­ble nor a good strat­egy," Ra­jan said in a speech at a con­fer­ence on medium scale en­ter­prises in Tri­van­drum, in south­ern In­dia.

"This (de­val­u­a­tion) is not the in­tent of RBI." But Ra­jan re­it­er­ated the cen­tral bank would strive to curb ex­ces­sive volatil­ity.

The In­dian ru­pee has been one of the worst per­form­ers in Asia this year, fall­ing by nearly 3 per­cent af­ter strong for­eign in­vest­ment out­flows from equity mar­kets.

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