Indian Prime Minister’s top economic adviser C Rangarajan has said worst may be over for Indian rupee, whose value has plunged since May this year.

New Delhi, Sept 6/Nationalturk – In what can be termed as a good news for Indian economy and investors interested in investing in India, Indian Prime Minister’s top economic adviser C Rangarajan has said worst may be over for Indian rupee, whose value has plunged since May this year.

“The worst may now be over for Indian rupee. It could stabilise at the current 65 to 66 a dollar level,” Rangarajan told Indian news channel, NDTV.

He said he believes that at the present level, the Rupee is well corrected.

“If you take 2004-2005 as the base, the calculations made clearly indicate that somewhere about 62-63/$ it is well corrected therefore anything beyond that is result of whereas other forces operating in the system. I believe that rupee can stabilise and even strengthen from the current position as capital flows come in. So we are on the road to stabilization,” said Rangarajan, an economic expert and former Governor of India’s central Bank – RBI.

Indian Prime Minister Dr Manmohan Singh and Finance Minister P Chidambaram have stressed in the last fortnight that the rupee has overshot its true level.

‘Indian rupee’s stability will also depend on Syria situation’

Rangarajan, however, said Indian rupee’s stability would also depend on how the events turn in Syria, where US attack is imminent.

“The value of the rupee in the foreign exchange markets is not only determined by our own actions by also what is happening in the rest of the world, over which we have no control. If the Syrian crisis takes a serious turn, I do not know what impact will it have, capital flows can be affected. But barring these, I see stabilisation happening. It can stabilise around the current level and if capital flows come in it can further strengthen,” he said.

The Indian rupee is among the worst performing currencies in Asia. Its value  has fallen nearly 20 per cent since May this year, getting alarmingly close to the 69 levels last week.

However, after appointment of Raghuram Rajan as Governor of India’s central bank – Reserve Bank of India RBI – and his new action plan to rescue the Indian currency, Indian rupee has pulled back to 66 levels.

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Faiz Ahmad / NationalTurk India News

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