RBI to intervene in case Re goes past 43 mark

Subir-Gokhran-RBIPeople who are close to the currency matters and the RBI have said that the apex bank will start intervening into the exchange rate system, the moment rupee crosses the 43 level mark against the US dollar.

As long as that happens, the government is cool. The comfort range set by them is between 43 and 45, said the officials on October 15. In the last month or so the rupee has appreciated by 3.7 per cent to touch 44.42 per every dollar.

While the policy makers are not in mood to curb the capital outflow from the overseas, they also want to protect the exporters by buying out dollars, the official who did not wish to be named said.

Subir Gokhran, Deputy Governor of RBI had already said that the RBI is going to sell rupee in the market so as to curb the growth of value. In terms of value, the rupee is the second-best performer in Asia after Japan during this month.

This has prompted big exporters like Infosys to go for restrictive measures and also capping the currency's strength.