Rupee's Devaluation due to National, International Factors: Pranab

Kolkata: Union Finance Minister Pranab Mukherjee attributed the cumulative effect of several national and international factors, including the Eurozone crisis, for the devaluation of the Indian rupee, which hit a record low of 56.40 against the dollar this week. "There are multiple reasons which are responsible for the fluctuation in the value of the currency. The volatility in the oil prices and the uncertainty in Europe have resulted in a situation where many agents are putting their surplus in America which is considered a safe haven at present," Mukherjee told media persons here. "Back in the country, the reduction in exports and increase in imports, and the fiscal deficit has increased as also current account deficit which also have played their part," he said. Attributing the decrease in demand of Indian goods in European market for the decline in exports, he said: "Economic recovery at the moment is poor and fragile." He,however, assured about the recovery of the rupee stating that the Reserve Bank of India has been and will continue talking remedial measures. Hoping for a surge in foreign institutional investment (FII) and foreign direct investment (FDI), he said the government has been taking necessary steps at the opportune time for attracting investments.