Rupee shows flexibility in world market: FM

FII inflows stood at $10.9 billion in 2003-04, $8.3 billion in 2004-05 and $4.2 billion in the first half of 2005-06.

India on Wednesday said Rupee, was displaying "admirable flexibility" in adjusting to the various twists and turns taking place in global foreign exchange markets.

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The observation was made by Finance Minister P Chidambaram, who was addressing reporters at the Japanese Press Club in Tokyo.

He also noted that portfolio inflows, particularly in terms of FII investments, have gone up sharply in India, as FII funds have come to appreciate India as one of the best markets in terms of risk-return payoffs.

"FII inflows stood at $10.9 billion in 2003-04, $8.3 billion in 2004-05 and $4.2 billion in the first half of 2005-06," he said.

The Finance Minister said India also had the sixth largest foreign reserve holding in the world, with a net reserve of over $139 billion at the end of 2005.