Rupee to remain at 68-70 level: Economic Affairs Secretary

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NEW DELHI – On a day when the Indian rupee plunged to a record low of 70.65 to a US dollar, the government on Wednesday said it was expected to remain in the range of 68 to 70 during the year.

Economic Affairs Secretary Subhash Chandra Garg told the media that the depreciation in the rupee was due to some small mismatch in the demand and supply, which may go either way depending on the view taken by the operators.

He said while foreign portfolio investors took some USD nine billion from the country during the first three months of the current fiscal, net flow was at an equilibrium in July.

“This month there has been so far a positive inflow of over one billion dollars. That suggests the sentimental change about the view on rupee (and) that the current levels are fairly stable,” Garg said.

“Therefore, that gives me some confidence that where we are today, there may not be much variation. So I retain the same view that between 68 to 70 is the level where the rupee would mostly remain.

“Considering fundamental supply of dollars and the demand, it should be fair to assume that that might be the level on which it will stay during the year,” he added.

Earlier, after hitting an all-time low 70.65 per dollar, the rupee settled at 70.59 per dollar, depreciating by 49 paise from its previous close of 70.10 per dollar.