The Reserve Bank of India Governor, Dr D. Subbarao, on Wednesday declined to confirm reports that the apex bank had stepped in to halt the slide of the rupee against the dollar, even as the Indian currency unit somewhat bounced back after hitting a new low on Tuesday.
Asked to confirm the RBI's reported intervention in the forex market today, he said: “I will not confirm”.
According to reports, the halt in rupee's plunge was an upshot of some state-owned banks selling dollars during the day. The rupee had hit a record low of 52.73 against the dollar yesterday.
On Tuesday, the RBI Governor had said that the apex bank can intervene in the forex market to check volatility. “We will intervene when it is inconsistent with our policy, but cannot give you a timeline for this,” he had told media persons on the sidelines of a function. amitmitra@thehindu.co.in