R hits 25-mth high, Subbarao talks of rbi intervention

On a day when the Rupee hit a two-year high, RBI Governor Duvvuri Subbarao said that the Reserve Bank would “intervene if inflows are lumpy and volatile”.

On a day when the Rupee hit a two-year high, RBI Governor Duvvuri Subbarao said that the Reserve Bank would “intervene if inflows are lumpy and volatile”.

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Referring to the record

$22-billion FII investments in the stock markets this year, Subbarao said: “We are watching the situation and our policy is clear. We will intervene if (FII) inflows are lumpy and volatile or they disrupt macro economic conditions.”

He was here for a meeting of the RBI board.

Finance Minister Pranab Mukherjee had in a television interview ruled out curbing FII inflows.

The rupee rose to touch a 25-month high of 44.06 against the US dollar on Friday.

According to reports, RBI had on Thursday bought dollars in the foreign exchange markets to arrest the rising rupee.