RBI will intervene if inflows turn lumpy: Subbarao
By ANIFriday, October 15, 2010
CHANDIGARH - Reserve Bank of India (RBI) Governor Duvvuri Subbarao on Friday said the central bank will intervene in the forex market if inflows turn lumpy and volatile.
The RBI had earlier on Thursday bought dollars to stem the rupee’s strength.
“I can only say that we are watching the exchange rate situation but our policy are quite clear that we said a number of time that we will intervene if flows are lumpy or volatile or if they disrupt the macro economic situation that remains our policy but I cannot comment on that,” said Subbarao, while addressing the media persons here after the RBI’s Board Meeting.
India has attracted a record 22.5 billion dollars in inflows into stocks this year, which have put an upward pressure on the rupee.
The rupee has appreciated 6.8 percent on foreign equity inflows since the start of September of more than 9.5 billion dollars, pushing the currency to a more than 25-month high. (ANI)
