KOLKATA: The rupee, which has taken a severe battering of late, is predicted to stabilise at 68-69 in step with US buck level riding on positive capital inflows this month, economic affairs secretary Subhas Chandra Garg on Saturday said.
The rupee is already Asia's worst performing currency and had touched an all-time low of 70.09 in step with US buck on Tuesday.
According to Garg, the present turmoil in Turkey, induced by means of US sanctions, had now not affected the perception of India. The drift of international portfolio investments (FPI) had now not altered either and there have been no outflow in July, Garg said whilst talking at an interactive consultation organised by means of the Merchants' Chamber of Commerce & Industry right here.
During the primary 3 months, there have been outflow of capital and within the final year the total outflow was $20 billion, he added.
"If oil prices do not rise further, the chances of the rupee stabilising at 68-69 level is more," Garg said.
When asked how the rupee will probably be affected if China devalued its currency, he said that for the primary time within the final 20 years, the Chinese economy had experienced present account deficit (CAD).
"Now China's exports and imports are altering fundamentally. So far, the depreciation of the Chinese yuan was not so high. Even if the Chinese currency is devalued, India will not be affected as long as the depreciation of all currencies vis-a-vis the dollar was similar," he added.
There would be no drawback as terms-of-trade would now not change, Garg said.
"However, we are watching closely to what extent China devalues its currency," he said.
Owing to high oil costs, India's CAD had risen to one.9 in step with cent for which the rupee was depreciating. This called for a need for higher capital inflows, he added.
The rupee is already Asia's worst performing currency and had touched an all-time low of 70.09 in step with US buck on Tuesday.
According to Garg, the present turmoil in Turkey, induced by means of US sanctions, had now not affected the perception of India. The drift of international portfolio investments (FPI) had now not altered either and there have been no outflow in July, Garg said whilst talking at an interactive consultation organised by means of the Merchants' Chamber of Commerce & Industry right here.
During the primary 3 months, there have been outflow of capital and within the final year the total outflow was $20 billion, he added.
"If oil prices do not rise further, the chances of the rupee stabilising at 68-69 level is more," Garg said.
When asked how the rupee will probably be affected if China devalued its currency, he said that for the primary time within the final 20 years, the Chinese economy had experienced present account deficit (CAD).
"Now China's exports and imports are altering fundamentally. So far, the depreciation of the Chinese yuan was not so high. Even if the Chinese currency is devalued, India will not be affected as long as the depreciation of all currencies vis-a-vis the dollar was similar," he added.
There would be no drawback as terms-of-trade would now not change, Garg said.
"However, we are watching closely to what extent China devalues its currency," he said.
Owing to high oil costs, India's CAD had risen to one.9 in step with cent for which the rupee was depreciating. This called for a need for higher capital inflows, he added.
Rupee might stabilise at 68-69 a dollar: Economic affairs secretary
![Rupee might stabilise at 68-69 a dollar: Economic affairs secretary]()
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August 19, 2018
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