PM econ adviser: Drawdown on foreign reserves to fund CAD

NEW DELHI (Reuters) - The economic adviser to Prime Minister said on Friday there will be a drawdown on foreign exchange reserves to fund a wide current account deficit, but forecast the deficit could narrow to below $70 billion this fiscal year.

C. Rangarajan said that if current trends of imports and exports continued that would help the deficit, and predicted the rupee could recover from current levels of 63.8 against the dollar as capital inflows improve.

(Reporting by Rajesh Kumar Singh; Writing by Sruthi Gottipati; Editing by Frank Jack Daniel)