The rupee touched an all-time low of 70.09 against the dollar on Tuesday. Photo: iStock
Kolkata: The rupee is expected to stabilise at 68-69 per US dollar, riding on positive capital inflows, Economic Affairs Secretary Subhas Chandra Garg said on Saturday.
The rupee, Asia’s worst performing currency, touched an all-time low of 70.09 against the dollar on Tuesday. The current turmoil in Turkey, triggered by US sanctions, had not affected the perception of India, Gard said. The flow of foreign portfolio investments (FPI) had not altered either and there had been no outflow in July, he added.
During the first three months, there had been outflow of capital and in the last year the total outflow was around $20 billion. “If oil prices do not rise further, the chances of the rupee stabilising at 68-69 level is more,” according to Garg.
When asked how the rupee will be affected if China devalued its currency, Garg said that for the first time in the last 20 years, the Chinese economy had experienced current account deficit (CAD). “Now China’s exports and imports are altering fundamentally. So far, the depreciation of the Chinese yuan was not so high. Even if the Chinese currency is devalued, India will not be affected as long as the depreciation of all currencies vis-a-vis the dollar was similar.”