Mumbai : RBI Governor Raghuram Rajan said the rupee’s current level does not warrant any concern, even as he maintained the central bank will continue to intervene in the market by selling and buying dollars.
Stating that RBI does not deliberately target any particular level for the currency, Rajan also said RBI has started intervening in the currency futures market to stop any kind of arbitrage. “We are using all the available instruments. Sometimes what happens is that you intervene in one particular instrument, but a gap builds up in another, and that creates the scope for arbitrage,” he said.
The rupee closed at 67.98 against the US dollar on Tuesday. As per the latest data, RBI in November made net purchase worth USD 15 million after it purchased USD 3.004 billion and sold USD 2.989 billion in the spot market.
