RBI will intervene if inflows turn lumpy: Subbarao
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.
