Investors need not worry about the immediate volatility in the exchange value of rupee vis-a-vis US dollar in the wake of China allowing yuan to appreciate against the American currency, Reserve Bank of India (RBI) Deputy Governor Subir Gokarn said on Monday.
He based his optimism on hedging tools available. “In a scenario where the hedging opportunity is available and relatively accessible, I do not think we should worry on the short-term impact of volatility,” he said.
“Volatility per se is not the issue. The issue is whether investors have the means to hedge themselves against it,” he said adding that RBI has allowed currency futures for investors to hedge against risks.
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