Written by: ENS Economic Bureau
2 min readNew DelhiJul 13, 2013 01:15 AM IST
First published on: Jul 13, 2013 at 01:15 AM IST
India is looking at all possible options,including a sovereign bond issue to strengthen a weak rupee,chief economic adviser Raghuram Rajan said on Friday after taking suggestions from investment banks.
The governments policy intention right now is also to attract more dollar inflows to finance the current account deficit. The rupee,which nearly weakened 35 per cent since mid October 2010,closed at 59.56 on Friday,gaining marginally from its all-time low seen earlier this month. The weaker domestic currency that makes imports costlier and fuels inflation also comes in the way of any further policy rate cut by RBI at a time when the economy is at its slowest pace of growth in a decade.
They have given us a lot of ideas,including sovereign bond issues,NRI bond issues. All options are on the table and we will examine them. As and when the need comes,we will take up those options, Rajan told reporters after meeting representatives from ten banks.
The meeting was termed as a brainstorming session.
They gave suggestions on a number of issues ranging from ways we can make the market more liquid,what kinds of funding needs India might have,how those should be contributed to. They will follow up with more suggestions and we will take note of those and act upon them over time, Rajan added.
He met officials from SBI Caps,Nomura,Barclays,Goldman Sachs,JP Morgan,Bank of America-Merrill Lynch,HSBC,Citigroup and Deutsche Bank.
Rupee at 2-week high of 59.56/
Mumbai: The rupee on Friday appreciated by 11 paise to close at a two-week high of 59.56 against the dollar on fag-end sales of the USD by exporters amid a strong rally in local equities. Meanwhile,the BSE Sensex rose 1.44 per cent to a six-week high at 19,958.47. The Nifty on the NSE ended above 6,000 for the first time since May 30,jumping 1.25 per cent to 6,009. pti
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