Rajan Says Rupee Value Reasonable as Devaluation to Fan Prices
- ‘Currency is a complicated animal,’ RBI Governor says
- India’s rupee is weakening in 2016 for a sixth straight year
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India’s rupee is reasonably valued and a devaluation of the currency will spur inflation and not necessarily help exports, according to central bank Governor Raghuram Rajan.
“Currency is a complicated animal,” Rajan said in the city of Hyderabad on Monday. “Some of our emerging market counterparts, for example Brazil, which have had significant devaluations, haven’t necessarily seen a tremendous expansion in their exports. So we have to be a little careful in saying devaluation is the answer.”