Rupee track

On the recent weakening of the rupee against the dollar and whether he expects the rupee to continue to depreciate against the dollar, Mr Kamath said that he cannot forecast where the rupee will be going. “All that I can say is the economy is strong. The recent weakening of rupee should be looked at from the point of strengthening of the US dollar by 5-7 per cent against major currencies in the last few days. The US market is also taking a view that there will be no further interest rate cuts there,” he said.

The CII President said that capital flows into India are not that strong now and this may have also led to weakening of the rupee against the dollar in recent days.

On the rising global crude oil prices, which has crossed $122.31 per barrel, Mr Kamath said that the recent 5-10 per cent increase in prices is not going to dramatically change the situation. “As prices went up from $35 to $120, we need to see how much we have suffered. There is a need to see what the extent of that suffering is. Given the drivers of growth, impact of oil in day-to-day life is getting less,” he said.

Taken from Business Line

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