Economy May 23, 2013
New Delhi: The government will be comfortable with a stable rupee exchange rate and there was no reason for the currency to be unstable, Raghuram Rajan, chief economic adviser to Prime Minister Manmohan Singh, said on Thursday.
The rupee fell to its lowest in over 8-1/2 months on Thursday, heading for a fifth consecutive session of falls, as the dollar rallied at the prospect the Federal Reserve might scale back its stimulus programme this year.
NSE index futures also fell as much as 2.2% amid U.S. stimulus worries and a weak China manufacturing survey.
Rajan said according to his "reading," the U.S. Fed will continue with the stimulus measures.