New Delhi – The finance ministry is in touch with the Reserve Bank of India (RBI) for market intervention to check declining value of rupee, which weakened to 72.45 to a dollar on September 10, an official said. The RBI has been selling dollars to arrest declining rupee, which led to a decline in forex reserves from USD 426 billion in April to USD 400.10 billion at the end of August.
The RBI has sufficient foreign exchange reserve, the official said, adding the ministry is in touch with the central bank for timely market intervention. However, the official said the decline of rupee was not secular as the Indian currency has strengthened against British Pound, Euro, Chinese Yuan and Japanese Yen.
The government, the official said, also has the option of tapping NRIs for raising foreign exchange but a decision in this regard would be taken after due consideration.
“There is no panic situation as most of the global currencies are facing the heat of strengthening dollar. In fact, rupee has strengthened against various other currencies,” the official said. Current Account Deficit (CAD), which is the difference between inflow and outflow of foreign exchange, rose to USD 18 billion or 2.4 per cent of GDP in April-June quarter on account of rising global crude oil prices.