In the news report “Rupee breaches 52-mark” (Business Line, November 22), it is reported that the rupee has been Asia's worst-performing currency, weakening 17 per cent against the dollar this fiscal. Heavy dollar demand from foreign institutional investors (FIIs), importers and oil companies saw the breach at a 32-month low. The Secretary (Economic Affairs), Ministry of Finance, says that the central bank's ability to intervene in the foreign exchange market is, however, limited. There was no matching supply for the demand for dollars. Though the rupee came under tremendous pressure, the RBI intervention in the market was only a token. This situation clouded the rupee's sentiment.
T. V. Jayaprakash (HBL)
