India will be comfortable with stable rupee exchange rate: Rajan

NEW DELHI (Reuters) - The government will be comfortable with a stable rupee exchange rate and there was no reason for the currency to be unstable, chief economic adviser Raghuram Rajan said on Thursday.

The rupee fell to its lowest in over 8-1/2 months on Thursday, heading for a fifth consecutive session of falls, as the dollar rallied at the prospect the Federal Reserve might scale back its stimulus programme this year.

Nifty futures also fell as much as 2.2 percent amid U.S. stimulus worries and a weak China manufacturing survey.

Rajan said according to his "reading," the U.S. Fed will continue with the stimulus measures.

 

(Reporting by Rajesh Kumar Singh, writing by Anurag Kotoky; Editing by Sunil Nair)