Sun, 27 May 2012 14:36:39 GMT

RBI taking steps to check rupee slide: Pranab

Attributing the slide in rupee value to various domestic and global factors, Union Finance Minister Pranab Mukherjee on Sunday said the Reserve Bank was taking steps to arrest the currency’s depreciation.

RBI taking steps to check rupee slide: Pranab

"There are a lot of reasons for this (depreciation). There is demand and supply in the market. In the US, there is surplus investment. It used to be a safe haven," he told reporters.

"Europe used to be an important destination for exports, but demand there is uncertain," he said, adding global recovery was "poor and fragile" while oil prices were on rise.

India's fiscal deficit too is widening and is estimated to have touched 5.9 per cent of GDP in 2011-12.

"Because of the cumulative effect of all these reasons the price of rupee is falling down," he added.

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