Niti Aayog vice chairman Rajiv Kumar today said weakening of rupee is not a cause of worry as it is still overvalued in terms of Real Effective Exchange Rate (REER).
The rupee is hovering around a low of 69 per dollar due to multiple headwinds, including concerns over inflation and weak global cues.
During the UPA-II regime in 2013, the rupee had weakened from 57 to 68 a dollar in three months, and hence the comparison would be misplaced, Kumar said in a press conference on initiatives taken by Niti Aayog.
He was responding to criticism of the government on the issue of handling of the rupee.
"Rupee is overvalued in terms of REER. There is no reason to worry...RBI has maintained that it will not interfere to keep the rupee at any particular level," Kumar said.
On the issue of takeover of IDBI Bank by LIC, Kumar said: "LIC will make very good money by investing in IDBI. I see IDBI Bank's turnaround soon and improvement in its market capital."
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app