Ex-RBI Chief Says Rupee Near 97 per Dollar Needs Structural Fixes
Updated
Updated · Bloomberg · Aug 11
Ex-RBI Chief Says Rupee Near 97 per Dollar Needs Structural Fixes
3 articles · Updated · Bloomberg · Aug 11
Summary
Duvvuri Subbarao said India’s weak rupee cannot be stabilized by short-term capital-attraction steps, arguing deeper structural reforms are needed to reverse money outflows.
Foreign investors’ waning appetite for India is driving funds out of the country, he said, undermining confidence in the currency and limiting the impact of temporary support measures.
June’s move to lure more foreign currency from non-resident Indians is “too costly” if its main aim is simply to bolster the rupee, according to the former RBI governor.
The warning follows the rupee’s slide to a record low near 97 per dollar in May, adding to broader economist calls for longer-term economic fixes.