The government will not take steps to stem the rupee's slide and it expects the currency to stabilize within days, Economic Affairs Secretary Arvind Mayaram said on Tuesday, after the rupee fell to a record low for a second straight day.
The government will not take steps to stem the rupee's slide and it expects the currency to stabilize within days, Economic Affairs Secretary Arvind Mayaram said on Tuesday, after the rupee fell to a record low for a second straight day.
The government was not happy with the fall but not unduly disturbed by it, Mayaram told reporters.
"There is every indication that the rupee will stabilize, and it is actually going to inch up. This is a temporary phase... Our indication is that some FIIs are now poised to bring in large funds to invest in debt segment in India," he added.
The absence of central bank intervention prompted importers on Tuesday to rush to cover future dollar needs, while exporters refrained from selling dollars in expectation that the rupee could fall further.
Copyright: Thomson Reuters 2013
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