Exchange rate is always on RBI radar: Subbarao

Amid high volatility in rupee's exchange rate vis-a-vis the US dollar, the Reserve Bank of India (RBI) today said the currency's movement is "always on its radar" and the central bank will come out with a definitive statement in this regard in its mid-quarterly meeting on December 16.

"I cannot say whether we can intervene or not but the exchange rate is always on the radar of RBI," Governor D Subbarao told reporters after the central bank's board meet here.

Subbarao said the rupee had depreciated 14% since early August due to inflationary pressures.

"We will be coming out with a more definitive statement in the December 16 review meeting," he added.

"But as of now our understanding of some amount of rupee depreciation and assessment of oil price has been built into the projection of 7% WPI inflation by March 2012. Any revision of this will come out on December 16," Subbarao said.

He said it was not possible to say what the RBI had done in the forex market which will be known when the figures were released and would be able to get an idea to the extent or otherwise of intervention.

"But as far as rupee depreciation over the last three months is concerned, it had been a result of developments outside the country, particularly Europe," he observed.

"This was because there were no inflows coming in a significant way and the exchange rate has been determined by the current account deficit," he said.