RBI should intervene regularly to keep check on rupee's value, say economists
Updated: Jan 15, 2016 02:40:02pm
New Delhi Jan 15 (KNN) Indian economy has witnessed the weakest fall in rupee since September 2013 creating a ruffle among the economists about the impact it can have on the economy which is already facing an export crisis.
India has been witnessing a fall on the export front this fiscal. Economists believe that the fall in rupee’s value might bring a worsening turn in economy.
KNN caught up with V N Suri, an Expert Economist from Delhi. “Many factors can be attributed to this current phenomenon in our economy,” said Suri.
“Earlier, the rupee was overvalued, but as per the recent trends, dollar is getting stronger in global economy affecting rupee as well as other currencies.”
However, Suri stated that the dollar is affecting other currencies more intensely than the rupee. “Weakening of rupee in the global market has affected almost every sector that depends on even a small fraction of import,” the economist told KNN.
“Exports are going to suffer to a large extent, and the situation is going to get worse” he added.
The economist was of the view that RBI should keep a regular check by intervening at consistent intervals to avoid the unprecedented fluctuation in the value of rupee. “I feel that RBI should regularly intervene and check to keep rupee at level suited for the economy and not let the market decide its value” he said.
“Leaving the value of rupee to be decided by the market would lead the rupee to face its unfavourable inflation or downfall,” Suri added. (KNN Bureau)
India has been witnessing a fall on the export front this fiscal. Economists believe that the fall in rupee’s value might bring a worsening turn in economy.
KNN caught up with V N Suri, an Expert Economist from Delhi. “Many factors can be attributed to this current phenomenon in our economy,” said Suri.
“Earlier, the rupee was overvalued, but as per the recent trends, dollar is getting stronger in global economy affecting rupee as well as other currencies.”
However, Suri stated that the dollar is affecting other currencies more intensely than the rupee. “Weakening of rupee in the global market has affected almost every sector that depends on even a small fraction of import,” the economist told KNN.
“Exports are going to suffer to a large extent, and the situation is going to get worse” he added.
The economist was of the view that RBI should keep a regular check by intervening at consistent intervals to avoid the unprecedented fluctuation in the value of rupee. “I feel that RBI should regularly intervene and check to keep rupee at level suited for the economy and not let the market decide its value” he said.
“Leaving the value of rupee to be decided by the market would lead the rupee to face its unfavourable inflation or downfall,” Suri added. (KNN Bureau)
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