Asia's worst-performing currency in 2011, the rupee today tumbled to an all-time low against the US dollar.
In an interview to CNBC-TV18, talking about the nose-dive in the Indian currency, experts Anant Narayan, managing director, regional head of fixed income and currency trading, south Asia at Standard Chartered Bank and Sajjid Chinoy, Asia economics at JPMorgan suggest that despite the volatility being global, in the short term, it is only the central bank that can intervene and arrest the free fall. "Where the rupee is today is unjustified by the fundamentals. It is clearly overshooting driven by panic and the panic is mostly home grown," says Chinoy. And, adding to it, Narayan suggests that the Reserve Bank alone can bring bank sanity into the current state. "The first thing is to bring some semblance of sanity into the market in the short run which the RBI is well equipped to do. RBI has the reserves and there are taps that can open with which the other authorities, including the Ministry of Finance can bring in funds," he further added. Below is an edited transcript of the expert discussion on CNBC-TV18. Also watch the accompanying video. Q: How do you interpret the Reserve BankDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
