Rupee tracking closer to its fair value, say experts
Kolkata, Sep 15 : The Indian rupee is "tracking closer to its fair value" and the scope for further rapid depreciation appears unlikely, though the time is appropriate for policy interventions to anchor negative sentiments, experts said on Saturday.
"Currently, the rupee is tracking closer to its fair value as per our fair value computation. From here on, the scope for rapid depreciation appears unlikely," Yes Bank's Group President and Chief Economist Shubhada Rao said.
The Indian rupee on Friday closed at 71.85, recovering 34 paise from its previous close of 72.19 per greenback.
She, however, said policy interventions are required to anchor the "negative sentiments".
"The government and Reserve Bank can make policy interventions now. If it does not, the expectations get un-anchored. It is very important to anchor the expectations and time is appropriate to do it," she said on the sidelines of an event organised by the Merchants' Chamber of Commerce and Industry.
According to her, there could be short term measures to contain the trade imbalance. In order to stop further depreciation of the rupee and widening of current account deficit (CAD), the government on Friday took some measures and a broad policy decision to curb non-essential imports and increase exports.
International Monetary fund (IMF) Senior Resident Representative for India, Nepal, Bhutan, Andreas W. Bauer, said as per their assessment, the real exchange rate level is "broadly in line with the fundamentals".
Citing a study prepared by the lender, Rao said the recent phase of relative depreciation has reduced the misalignment of the Indian rupee from fair value based on real effective exchange rate (REER) rebased to FY12.
Estimated overvaluation is likely to have reduced to 3.7 per cent in August from 9.9 per cent in the corresponding month last year, she said.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
RR beat RCB by six wickets in IPL
Guwahati (PTI): Blistering fifties by Vaibhav Sooryavanshi and Dhruv Jurel powered Rajasthan Royals to a six-wicket win over Royal Challengers Bengaluru in their IPL match here on Friday.
Sent in to bat, RCB rode on a fighting half-century by skipper Rajat Patidar (63) to post 201 for 8.
Virat Kohli (32), Romario Shepherd (22) and Venkatesh Iyer (29) also chipped in with useful contributions.
In reply, Sooryavanshi (78 off 26 balls) and Dhruv Jurel (81 not out off 43 balls) shared a 37-ball 108-run partnership for the second wicket to set the platform. Krunal Pandya (2/30) tried to bring them back with back-to-back wickets.
But Jurel, in the company of Ravindra Jadeja (24), completed the task with another 68-run stand, with two overs to spare.
For RR, Jofra Archer (2/33), Ravi Bishnoi (2/32) and Brijesh Sharma (2/37) took two wickets.
Brief scores:
Royal Challengers Bengaluru: 201 for 8 in 20 overs (Rajat Patidar 63; Jofra Archer 2/33, Ravi Bishnoi 2/32, Brijesh Sharma 2/37).
Rajasthan Royals: 202 for 4 in 18 overs (Vaibhav Sooryavanshi 78, Dhruv Jurel 80 not out; Krunal Pandya 2/30, Josh Hazlewood 2/44).
