The Indian rupee started the day below the Rs 54 mark and is now around Rs 54.21 levels. There has been a sense of shock in the currency market for the last few months, said Anant Narayan, managing director and regional head of fixed income and currency trading of South Asia at Standard Chartered Bank.
According to Narayan, the Reserve Bank of India (RBI) has enough firepower to restrict the downside. However, he clarified that the central bank is reticent about intervening aggressively. "The markets are looking at RBI for steps to rein in volatility," he added.
Narayan feels the current account deficit remains a key concern now. He believes the rupee isn't sacrosanct at any level at this moment. The RBI should now start focusing on the growth, he added. Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying videos. Q: What are you staring at now from this level of Rs 54.25 levels?
A: It has been a state of shock for the last few months, not just this morning. We have gone down 25% in a short time and the rest of Asia hasn
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