RBI intervening to stem rupee`s appreciation: CEA Arvind Subramanian

Subramanian said there was a `big` appreciation of the rupee between January and April which had adversely impacted Indian exports and the country`s import-competing sectors.

New Delhi:  The big appreciation in the rupee between January and April impacted both exports and imports, Chief Economic Adviser Arvind Subramanian said, adding that the RBI has been intervening in the forex market for the past three months.

Subramanian further said all emerging economies face this problem, with a surge in capital inflow putting pressure on the exchange rate.

He is hopeful of moderation of forex in coming days.

The rupee has seen significant appreciation this year and though this uptick is a headwind for exports and manufacturing growth, factors like global demand, commodity price movements can mitigate the overall impact.

"All countries struggle with this challenge. Different countries take measures based on their trade-offs and objectives. What the RBI has been doing is to stem appreciation of the rupee," he pointed out.

Putting up a smart resilience against heightened global volatility, the rupee on last Friday clawed back its lost territory to recover from its near six-month low and ended a marginal 2 paise higher at 64.79 per dollar.

It was trading up 3 paise at 64.76 against the US dollar today as selling of the American currency by exporters and banks gathered pace.