RBI intervenes in Forex market
NEW DELHI: In order to stabilize the undue volatility and contain the increasing appreciation of rupee against the dollar, the Reserve Bank of India has intervened in the foreign exchange market.
While answering the questions in the Lok Sabha today, the Finance Minister P Chidamparam said: “To the extent that RBI, with a view to reduce undue volatility, intervened in the foreign exchange market, such appreciation was moderated.”
Recent decline of dollar against major currencies apparently strengthened the rupee. While compared to other currencies, the rupee has witnessed a lower degree but against the dollar it has strengthened by a 6.67 percent during the April October 2007.
Chidambaram said that the government has taken relief measures to counter the adverse impact in the export sector due to the appreciation of rupee.
These include increasing the number of services eligible for refund or exemption of service tax; enhancement of duty entitlement passbook rates for nine sectors such as textiles and garments, handicrafts, engineering items and processed farm goods by three per cent; and enhancement of the rates of duty drawback ranging from 10-40 per cent for many items.
NEW DELHI: In order to stabilize the undue volatility and contain the increasing appreciation of rupee against the dollar, the Reserve Bank of India has intervened in the foreign exchange market.
While answering the questions in the Lok Sabha today, the Finance Minister P Chidamparam said: “To the extent that RBI, with a view to reduce undue volatility, intervened in the foreign exchange market, such appreciation was moderated.”
Recent decline of dollar against major currencies apparently strengthened the rupee. While compared to other currencies, the rupee has witnessed a lower degree but against the dollar it has strengthened by a 6.67 percent during the April October 2007.
Chidambaram said that the government has taken relief measures to counter the adverse impact in the export sector due to the appreciation of rupee.
These include increasing the number of services eligible for refund or exemption of service tax; enhancement of duty entitlement passbook rates for nine sectors such as textiles and garments, handicrafts, engineering items and processed farm goods by three per cent; and enhancement of the rates of duty drawback ranging from 10-40 per cent for many items.