Reserve Bank of India (RBI) Deputy Governor K C Chakrabarty today said the apex bank was concerned about the volatility of the rupee and not its appreciation or depreciation.
"We are not too much concerned about the Rupee going up or going down. We are concerned about its volatility. The volatility has to be managed. It has to be managed by the market players," Chakrabarty told reporters on the sidelines of a MSME knowledge conclave organised by ICICI Bank here.
The rupee has risen over 10 per cent against the dollar and is trading at below Rs 47 at present from Rs 52.17 in the first week of March, 2009.
Federation of Indian Export Organisation has already said the appreciation of the rupee would have a negative effect on exporters.
"As the rupee rises, importers are very happy, while exporters are concerned. We are not too concerned about it. As a policy-maker, we can't take any side," Chakrabarty said.
However, the Deputy Governor said the rupee was more stable as compared to the yen and on a long-term, the apex bank was happy the way the rupee was moving.
