Rupee responding well to global currency market: RBI

Thursday, 22 May 2003, 07:00 Hrs
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BANGALORE: The Reserve bank of India (RBI) is neither comfortable nor uncomfortable with the rising rupee, its deputy governor Rakesh Mohan said Wednesday.

"We are neither comfortable nor uncomfortable with the rising rupee. We never have a target for the rupee and we feel the movement of the exchange rate is adequate," Mohan told reporters on the sidelines of a World Bank conference on development economics.

"Looking at what is happening at the international markets and the kind of currency alignments taking place internationally we feel the Indian market and the currency market are responding quite adequately," he said.

The RBI, on its part, is "interested in maintaining orderly conditions of the market and maintaining some stability. Obviously, we don't have a fixed exchange rate target. We are operating quite adequately."

Asked about the rising rupee impacting on the margins of software companies, Mohan said: "I think we are an open economy and companies have to be responding themselves. Market is not something that is stationary."

But companies have responded "very well" to the different kinds of changes that have taken place in India and globally, he said.

"We had 18 percent growth in exports last year despite only two percent growth in world trade.

"The kind of performance we see currently in the market like auto exports, auto parts and chemical exports, and the composition of exports last year, you have a pretty wide ranging response.

"Companies are making the changes in response to world trade. There is no cause for concern," he said.
Source: IANS
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