Piyush Goyal: Steps on rupee fall after considering global situation

Noting that the earlier fall of the rupee to a record low in 2013 had prompted extraordinary measures from the RBI Interim Finance Minister Piyush Goyal on Friday sought to play down any alarm on this count saying the government would take appropriate measures after taking cognisance of the current global situationThe Indian rupee ended at 6879 per dollar on Thursday after breaching the alltime low mark of Rs 69 earlier in the day due to high crude oil prices and weak macroeconomic fundamentalsIn 2013 too the rupee had fallen to 6869 per dollar Goyal told reporters here on the sidelines of an Institute of Cost Accountants of India eventThen Reserve Bank Governor Raghuram Rajan introduced the FCNRB Foreign Currency NonResident Bank deposits scheme under which 32 billion came to India for three years which helped stabilise the ratesWe have returned those 32 billion and if you see in last five years there has not been any depreciation in the rupee If you look at macroeconomic data there could be some speculation because the foreign exchange reserves were 304 billion and it was 425 billion at the end of 201718 he saidI have full faith that the RBI which manages foreign exchange and rates and the government will sit together and discuss We will take a call on appropriate measures taking into consideration the global situationGoyal who holds temporary charge of the Finance portfolio while Arun Jaitley is convalescing ruled out any kneejerk reaction to tackle the situationKneejerk reaction is not called for One has to work in an organised market and in an organised fashionHe also said that while the countrys current account deficit CAD which was at 48 per cent in 201213 came down to 19 per cent 201718 the fiscal deficit over the same period had fallen from 45 per cent to 35 per centOur macroeconomic indicators from all respect are better today But you know global environment there was some announcement with respect to oil interest rate in the US have hardened So there is a flight of capital towards the US he saidAccording to analysts the current rupee fall is a panic reaction to various factors like the rising dollar and crude aided by a wider CAD and the continuous outflow from foreign institutional investors which have sold over Rs 40000 crore in debt and equity so far this yearCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updatesThis story has been sourced from a third party syndicated feed agencies Except for the change in the headline the story has been provided ASIS AS AVAILABLE without any verification or editing from our side Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever