Press Esc to close
Thursday 18 December 2014
News updated at 4:59 PM IST
Weather
Max: 26.2°C
Min : 19.5°C
In Bengaluru
Generally cloudy

Rupee to recoup in 2-3 mths, RBI not likely to step in:FinMin

Mumbai, Nov 24, 2012 (PTI)

Even as the rupee plunged to a 10 -week low against US dollar on Friday erasing almost the entire gains it made since the recent reform waves, the Finance Ministry today expressed optimism of a recovery before the fiscal-end and ruled out any intervention by RBI.

"We are quite hopeful that the rupee will strengthen in next two-three months," Economic Affairs Secretary Arvind Mayaram told reporters at the concluding day of the two-day Asia Securities Forum here.

Mayaram hoped the currency will appreciate once the economy is back on an upward curve without any effective intervention by the RBI. "I don't think RBI would have to effectively intervene for strengthening the rupee. We believe, once the slowdown bottoms out, the rupee will strengthen".

The rupee lost nearly 4 per cent against the dollar in November alone, becoming the worst loser among the leading global currencies for the month. Last year, the Indian unit was the second worst performer after the 'real' of Brazil, losing close to 20 per cent.

On the back of reform initiatives on September 14 and October 5, the rupee had rallied 5.1 per cent to close at 51.37 to the dollar. Since April, the rupee has fallen by more than 6 per cent, and it yesterday closed at 55.5350/5450 a dollar, a 10-week low. In 2010-11, the currency appreciated by 1.1 per cent, but slid by more than 12 per cent in 2011-12 in the wake of the European crisis.

Rejecting reports of Government slipping on the fiscal deficit target of 5.3 per cent for FY13, Mayaram exuded confidence of meeting the target on the back of successful beginning of the Rs 30,000-core divestment programme yesterday wherein the Government mopped up Rs 808 crore from a 5.6 per cent stake sale in Hindustan Copper.

"Let me reiterate, the Government is fully committed to meet its fiscal deficit target of 5.3 per cent. You have seen the results of first disinvestment. We are also looking at measures to constrain expenditure".

On the almost dried up primary market, he said after the success of Hindustan Copper share sale, the IPO market "should revive."


Go to Top

Photo Gallery
School children in Ahmedabad praay as they pay tributes...

School children in Ahmedabad praay as they pay tributes...

School children of Gurgaon pay tributes to the children killed in Pakistan...

School children of Gurgaon pay tributes to the children killed in Pakistan...

Kashmiri Muslim women pray outside the shrine...

Kashmiri Muslim women pray outside the shrine...

School girls take part in a protest against attack at a Peshawar school...

School girls take part in a protest against attack at a Peshawar school...

A Pakistani man comforts a student standing at the bedside of a boy who was injured in a Taliban...

A Pakistani man comforts a student standing at the bedside of a boy who was injured in a Taliban...

Pakistani parents escort their children outside a school attacked by the Taliban in Peshawar...

Pakistani parents escort their children outside a school attacked by the Taliban in Peshawar...

Ambulances carry injured people outside a school attacked by the Taliban in Peshawar, Pakistan...

Ambulances carry injured people outside a school attacked by the Taliban in Peshawar, Pakistan...

Relatives of a student, who was injured during an attack by Taliban gunmen on the Army Public...

Relatives of a student, who was injured during an attack by Taliban gunmen on the Army Public...

A plainclothes security officer escorts students rescued from nearby school during a Taliban...

A plainclothes security officer escorts students rescued from nearby school during a Taliban...

A Pakistani army soldier takes position on a bunker close to a school under attack by Taliban...

A Pakistani army soldier takes position on a bunker close to a school under attack by Taliban...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523