Rupee has not depreciated to a worrying level, says Rajan

TIL Desk/Business/New Delhi/Former RBI Governor Raghuram Rajan has said that the rupee has not depreciated to ‘too worrying levels’, though the government needs to take care of the widening current account deficit (CAD). The rupee on August 16 had slumped to a life-time low of 70.32 on strong demand for the US dollar.

The rupee today staged a good recovery to end higher by 20 paise at 69.91 against the US currency on bouts of dollar selling by exporters and corporates. “Well just to be fair, the Indian authorities have brought down the fiscal deficit. What has expanded is the current account deficit. A lot of it driven by higher oil prices,” he said.

“The rupee has not depreciated to too worrying levels, its sort dollar strength around the world,” Rajan told a TV channel. Rajan, who was RBI governor for three years till September 2016, said further that this is a time where countries should be focusing on getting the macro stability in order.

“Going into election year, countries like India and Brazil should try their level best to look as good as possible,” he said. On the controversy over back series GDP data which showed that the growth was better during UPA regime, Rajan said: “What we have to do right now is to look forward…its growing at about 7.5 per cent.”