SE Asia volatility also taints India<\/p>\n
NEW DELHI (Reuter): Finance Minister P. Chidambaram said
\nyesterday the Reserve Bank of India (RBI) will not tolerate
\nexcessive volatility in the rupee's exchange rate and added that
\nsome of the turbulence in Southeast Asia's currency markets has
\nspilled over to India.<\/p>\n
Chidambaram told an annual meeting of economic editors that
\nthe Southeast Asian exchange markets had been extremely volatile.<\/p>\n
\"It is naive to think that some of that volatility has not
\nspilled over. It has spilled over to the Indian market.\"<\/p>\n
\"While the exchange rate is market-determined, the RBI will
\nnot repeat not allow volatility and excessive speculation...what
\nwe want are orderly conditions in the foreign exchange
\nmarket...we want orderly conditions in the market and let the
\nmarket determine the exchange rate,\" Chidambaram told the
\neditors.<\/p>\n
Chidambaram also added: \"No decision has been taken on a
\n(rupee\/dollar) band.<\/p>\n
That should put an end to that controversy.<\/p>\n
He was referring to a newspaper interview with Prime Minister
\nInder Kumar Gujral last month in which Gujral was quoted as
\nsaying the finance ministry and the RBI were working on a
\nrupee\/dollar trading band.<\/p>\n
Both the ministry and the central bank have denied a band is
\nin the offing, but the rupee has been hit by major turbulence
\nover the past few weeks. On Monday it ended at a 19-month low of
\n36.685\/95 to the dollar, recovered on Tuesday, and on Wednesday
\nwas trading at around 36.470\/500 at 0535 GMT after RBI governor
\nC. Rangarajan expressed confidence in India's economic
\nfundamentals.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asia-volatility-also-taints-india-1447893297",
"image": ""
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