ET:RBI need not intervene to check rupee volatility: Kaushik Basu
NEW DELHI: RBI does not need to intervene right now to boost a weak rupee, chief economic advisor Kaushik Basu said on Friday. Basu said the current value of the rupee, trading at close to 51 to a dollar, is not "unnatural" considering the fact that India has seen greater inflation than the US.
"This is not the place where I would recommend intervention," he added. The rupee closed at 51.22 to the dollar on Thursday.
Emphasizing on the need for reforms to counter rising inflation, Basu said that next six months are very important for the economy and that there is a need to bring about an alignment in the political and economic interests.
