Anand Sharma says rupee not yet volatile

The rupee cannot yet be called volatile, trade minister Anand Sharma said today. The local unit has appreciated close to 5 per cent since the beginning of the year, part of a broad rise in emerging economy currencies as investors seek better returns in these markets.

The rupee cannot yet be called volatile, trade minister Anand Sharma said on Monday.

The local unit has appreciated close to 5 per cent since the beginning of the year, part of a broad rise in emerging economy currencies as investors seek better returns in these markets.

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The flood of money into emerging markets is causing a major headache for policymakers who worry their surging currencies will hurt exports, stunting economic growth.

The inflows are also fuelling concerns about asset bubbles forming in local equity and property markets, complicating fiscal and monetary policy.