RBI decision helped rupee recover: RBI deputy governor
01 Oct 2012
RBI deputy governor, Anand Sinha said today that India's decision to allow 51 per cent FDI in multi-brand retail had improved the market sentiment and helped the rupee to rebound.
He told PTI that on the positive side, the decision had improved sentiment as was shown in the market. He added the rupee had rebounded to a considerable extent and there certainly was promise.
According to Sinha, success of FDI in retail depended on how much India got in the end.
The domestic currency was up to a five-month high of 52.49 intra-day last Friday against the US dollar on signs of strong fund inflows. The rupee had been gaining steadily following the government's announcement of reform measures like allowing 51 per cent FDI in multi-brand retail.
Earlier in June, the rupee slumped to to its lifetime low 57.15 to a dollar.
Besides, BSE benchmark Sensex is also at 14-month high of 18,762.74 points, on consistent inflows of from FIIs after the announcement of reform measures by the UPA government.
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