RBI, govt monitoring rupee movement: FM
The rupee slid past Rs 52.50 per dollar in opening trade today before dropping to the lowest level in history of Rs 52.73 per dollar on sustained demand for the US currency from banks and importers. When asked what level the rupee exchange rate would be a concern, Gujral said that excessive depreciation of the rupee impacts India`s import bill.
"Excessive depreciation of the rupee does impact our import bill. With the marginal decline in the crude price, which is close to USD 107 (per barrel), it obviously gets lost through the depreciation and definitely our import bill for fertilisers and others also gets impacted," he said.
The rupee is the fourth-most depreciated currency in the world and the most depreciated in the Asian continent. The RBI has attributed the movement to demand-supply factors and said it is happening globally.