Reserve Bank of India Governor Raghuram Rajan, on Friday, said the recent rally in the rupee was comforting, but said the currency had not yet achieved stability which would only be reached when he stopped keeping a ‘minute-by-minute’ track of the unit.
“Absolutely, I am more comfortable where we are now than where we were a couple of weeks back,” he told reporters in an interaction after the release of the mid-quarter review of the monetary policy here.
After hitting a lifetime low of 68.85 against the dollar on August 28, the rupee has recovered aggressively to become the best performing Asian unit in the last fortnight.
Since September 4, when Dr. Rajan took over, the rupee gained a whopping 8 per cent till Thursday. The rupee, on Friday, closed at 62.23 to a dollar, down 46 paise.
Asked if he felt stability had been achieved in the currency or what would be the rupee level that would make him comfortable, Dr. Rajan declined a direct answer.
“A very hard to pin down definition is when I stop to worry about it on a minute-by-minute basis.” The renowned monetary economist, acclaimed for his prediction of the 2008 global credit crisis, said there were two kinds of volatilities a currency faced — huge intra-day swings and uni-directional movements over a period of time.
