INSUBCONTINENT EXCLUSIVE:
The rupee is close to its intrinsic value of around 72 per US dollar and the time is ripe for policy intervention to check further
depreciation of the Indian currency, according to Yes Bank
"Time is right for policy intervention to anchor the sentiment and check rupee depreciation
Currently, the rupee is tracking closer to its intrinsic value," Yes Bank group president chief economist Shubhada Rao said
Saturday.Speaking at the Merchants' Chamber of Commerce Industry's India Economic Forum 2018, Rao said that according to the bank's view,
intrinsic value of the rupee is around 72against a US dollar taken on a base of 2011-12
International Monetary Fund (IMF) India resident representative Andreas W Bauer also said according to their latest report, the rupee was
around its Real Effective Exchange Rate (REER).Rao said any further slide from the current levels was unlikely but it is difficult to
predict exact numbers due to sentiments, global geopolitical and economic reasons
She said fundamentally the current crisis is notsimilar to the 2013 situation
"During 2013, inflation was around 11 per cent, while now the inflation has been eased to about five per cent among other factors," she said
Rao, however, favours the need for policy intervention by way of controlling consumption-related imports like gold
On Wednesday, noted economist Ashok V Desai said the falling rupee is a "very strange situation" as the country is sitting on USD 400
"If the RBI wanted, it could stabilise the exchange rate at any point, even at Rs 40 or Rs 50, but RBI decided not to do it for some reason
There is absolutely no connection between what the Centre and the RBI are seeking
Why don't they talk to each other, and work out some rational policy," Desai told reporters at a Bengal Chamber of Commerce event.In
mid-August, city-based economist Abhirup Sarkar had called for policy intervention and suggested imposition of' restrictions' to stem the
Yes Bank has noted that overvaluation over fair value to have reduced to 3.7 per cent in August this year from 9.9per cent in August 2017
not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
