We reacting to developments on external front: Subbarao

Reserve Bank of India (RBI) governor D Subbarao today admitted that the cenrtal bank is reacttive to developing situation on the rupee front which are sometimes misinterpreted as giving confusing signals to the markets.
  
The outgoing governor said it took measures to raise short term interest rates last month, but when found that it is impacting long term rates, it relaxed on long term measures. 
   
When asked that it gives confusing signal to the markets, he said, "I admit, we are reacting to developments on external front."

Subbarao said the RBI is not taking any position on the value of rupee, but cant allow rupee to overshoot. He said RBI will continue to take measures as and when need arises.

"The central bank will revisit those measures if the situation stabilises," he said.