Published on Thu, Nov 25, 2010 at 23:00 | Source : Moneycontrol.com
Updated at Fri, Nov 26, 2010 at 09:55
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QE2 may boost volatile FX flows into India: RBI
Reserve Bank of India is concerned about volatile exchange rates, said Governor D Subbarao. Adding that RBI is not opposed to rupee appreciation or depreciation, Subbarao commented that recent rupee rise is due to volatile capital flows.
Reserve Bank of India is concerned about volatile exchange rates, said Governor D Subbarao. Adding that RBI is not opposed to rupee appreciation or depreciation, Subbarao commented that recent rupee rise is due to volatile capital flows.
However, he feels that US policy easing could boost volatile foreign flows into India.
He said that RBI exchange rate policy is not guided by a target or brand. "We need to augment domestic resources with foreign savings," he added.
The central bank prefers long-term funds over short-term, equity over debt and foreign direct investment (FDI) over portfolio flows, he said.
