The Reserve Bank of India is ‘keeping an eye' on the rupee depreciating to a new 32-month low against the U.S. dollar, Finance Minister Pranab Mukherjee said.
“The RBI is keeping an eye on it (depreciation of rupee). They are watching the situation at the appropriate level,” Mr Mukherjee told reporters on the sidelines of the Vatsalya Mela 2011 here. His comments came a day after the rupee plunged to a 32-month low of 51.35 on Friday on persisting demand for the U.S. currency from banks and importers.
On being asked what would be a comfortable rate of exchange and the likelihood of intervention by the central bank, Mr. Mukherjee said: “I am not guessing anything and I am not finding what is comfortable level. I am depending on the advice of the RBI.” Earlier speaking at the concluding function, Mr. Mukherjee expressed concern over the declining sex ratio.
He said that on the one hand women were marching ahead in various fields, which was a matter of great satisfaction, while on the other declining number of girl child births was a matter of grave concern. He assured the Ministry of Women and Child Development that there would be no dearth of financial assistance as far as the schemes and projects of women and child welfare were concerned. Minister of State for Women and Child Development Krishna Tirath said the Ministry was working on a proposal to provide monetary grant to pregnant women to improve reproductive and child health.