Shaktikanta Das said the Indian rupee should be allowed to find its level . The Indian rupee has declined by about 11% in real terms this calendar year from April to October .
Shaktikanta Das said today that the Indian rupee should be allowed to find its level and that it was crucial to carry out an objective assessment of the currencies movements in this volatile world, in which there are both push and pull factors at work.The rupee has declined by about 11% in real terms this calendar year from April to October, according to Shaktikanta Das, who announced the central banks' monetary policy decision to increase its key lending rate by 35 basis points (bps).In October, the currency fell below 83 to the dollar, setting a record low.Since recovering to 82.56, the rupee has weakened in part due to the dollar's upswing against major and emerging market currencies, which has remained stable following the tight interest rates hikes by the US Federal Reserve.This has hampered inflows into India and other emerging economies.It is also unlikely that their (the Feds') monetary policies will be expanded en masse.
The average rate of inflation is currently 3.75%-4%, and the US central bank is projected to raise rates by 50bps next week.