WASHINGTON, Sept 27 (PTI): The Indian government is concerned over the rapid rise in rupee vis-a-vis dollar but will not intervene other than providing some succour to exporters, Finance Minister P Chidambaram said here.
"It (rise of rupee) has some consequences, particularly for exporters," he told the news agency on the over 11 per cent rise in rupee against the greenback this year. If the package given in July was not sufficient the government could think of more steps to help them tide over the situation, he added.
Chidambaram, who also addressed the Peterson Institute for International Economics, said unless the US government takes some steps India cannot do anything in this regard.
"Our exchange rate has a symbiotic relationship with the exchange rate of the US... The rupee is stable against the euro and many other currencies. It is only against the dollar the rupee has appreciated by nearly ten to ten and a half per cent in the last eight to nine months," he said.
In this context, Chidambaram made it clear neither the government nor the Reserve Bank had a view on the exchange rate, which he said was market-determined and would remain so.
In a bid to calm the market, he said "if there is any volatility or disorderly movement I suppose the central bank will intervene using whatever instrument it has. The central government does nothing on that behalf".
Chidambaram said the government was concerned about rupee appreciation. The policy was to allow two-way movement of the exchange rate, but the movement should be "orderly", he said.
The Rupee touched 39.63 to a dollar Wednesday, its highest level since April 1998. The Reserve Bank of India (RBI) has refrained from intervening as this makes imports cheaper, helping it to contain prices in the world's second-fastest growing economy.
'Indian govt won't intervene, may think of more sops to exporters'
FE Team | Published: September 28, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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