CII seeks RBI help to check rupee rise
14 Apr 2010
The Confederation of Indian Industry (CII) has sought the intervention of the Reserve Bank of India (RBI) in the currency market to stall the appreciation of the rupee against the dollar, as it would derail a nascent recovery in exports.
CCI said the rupee's rise has already hurt the competitiveness of Indian exports and the RBI should effectively intervene in the forex market to prevent any further appreciation, Chandrajit Banerjee, director-general of the Confederation of Indian Industry (CII) said in New Delhi today.
"The recovery in Indian exports is still at a nascent stage and further appreciation of the currency especially with respect to our competitors will hurt the prospects for India's exports," said Banerjee.
The rupee has appreciated sharply against the US dollar over the past year and is currently ruling below the Rs45 to a dollar level against the Rs50 a dollar it reached a year ago.
The domestic unit has also appreciated against a host of other currencies, including the Euro, the Chinese Renminbi and the Japanese Yen.
The appreciation in the exchange rate is not consistent with the widening current account deficit of the country over the last two years, CII said in representation ahead of the RBI's monetary policy announcement.