The Hindu Business Line : RBI must rein in rupee rise, say chambers

New Delhi, Sept. 20 The FICCI President, Mr Habil Khorakiwala, has said that it is time the Reserve Bank of India lowered the interest rate and intervened in the forex market more aggressively to rein the rupee which is at a 9-year high against the dollar.

He said that feedback collected by FICCI from exporters showed that the current order book position of several exporters had weakened compared to what it was six months back. As a result, the export performance in the next six months would not show an encouraging trend. In several segments, exports had slowed down considerably, he said.

He added as a result of the Fed rate cut, more money was likely to flow into the Indian market, exerting more pressure on the rupee. The Assocham President, Mr Venugopal Dhoot, said that rupee had appreciated very steeply and exporter sentiment had gone down. Exports will fall short of the target by $20 billion and the Government intervention had become absolutely necessary to keep the rupee at 40 to a dollar, he said.

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