Reserve Bank of India (RBI) has enough “fire power” to deal with the rupee volatility, and will intervene in the forex market as and when required, said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
“It’s up to the RBI (to take action). It has a lot of fire power. It will intervene when it think it is necessary,” he said when asked about the measures being taken to check the fall of the rupee that touched a record low of 59.93 against the dollar.
US Federal Reserve Chairman Ben Bernanke said yesterday the Fed may start scaling back its stimulus programme later this year.
Following the statement, the US dollar strengthened against major currencies. The rupee hit a life-time low of 59.93 to a dollar in early trades today.