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RBI does not target any particular exchange rate, says chief: TV

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Reuters MUMBAI
Last Updated : Jun 03 2013 | 7:07 PM IST

MUMBAI (Reuters) - The Reserve Bank of India does not target any particular exchange rate, local news channels reported Governor Duvvuri Subbarao as saying on Monday, citing the Press Trust of India.

The rupee lost 4.8 percent to the dollar in May, the worst performer in emerging Asia. On Monday, it touched a low of 56.8250, a level last seen on June 28, 2012.

Subbarao also said the country's high current account deficit is a matter of concern, and that the monetary policy will take this into account.

India's current account deficit widened to a record high 6.7 percent of GDP in the December quarter, driven by heavy oil and gold imports and muted exports.

Subbarao said the comfortable level of inflation is at 5 percent. The headline inflation fell below 5 percent in April, but retail inflation still remained high at 9.39 percent.

(Reporting by Shamik Paul; Editing by Jijo Jacob)

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First Published: Jun 03 2013 | 6:48 PM IST

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