India's Central Bank would intervene in foreign exchange - RBI's governor
October, 11th 2010
The rupee rose on Monday tracking gains in domestic shares. The dollar's weakness against major units also helped the local unit. At 9:29 am, the partially convertible rupee was at 44.2650/2700 per dollar, stronger than 44.42/43 per dollar at close on Friday.
Shares rose 1 per cent in early trade on Monday, boosted by robust foreign fund inflow and firm Asian markets. The US dollar slid to 15-year lows versus the yen on Monday as soft jobs data fuelled expectations of more quantitative easing, while the IMF and G7 meetings produced nothing to avert a cycle of competitive depreciation.
The index of the dollar against six majors was down 0.25 per cent. Most Asian currencies were stronger than the US dollar on Monday. Foreign portfolio investments so far in 2010 have reached a record $21.3 billion, of which more than a third has come since the start of September.
India would intervene in the foreign exchange markets if needed to maintain stability, the RBI's governor said during a panel discussion at the International Monetary Fund in Washington on Saturday.