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The Fall: What They Said & Where They Think Its Headed

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Last Updated : Jan 15 1998 | 12:00 AM IST

Montek Singh Ahluwalia Finance secretary

There is no need to press panic buttons as the fall is not all that sharp. There is no reason for the rupee to remain weak in the medium term. The Indian economy is not hugely exposed to trade compared with other nations in East Asia. There is also no need for the central bank to target any rate. It should allow the market to decide the fate of the rupee.

Euan Macdonald

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Chairman, SBC Warburg India

Right now the currency is moving on fundamentals. The RBI governor is taking a soft stand, essentially watching the scenario as it unfolds. But one must understand sentiments can change quickly. Korea, Thailand and Indonesia have promised packages to restructure their banking and financial sectors, so the Asian story could change. On pure fundamentals, the India story is steady, with auto and cement sectors looking up and liquidity coming back into the markets.

Nikhil Khattau CEO, Sun F & C Asset Management

There is little difference in the 39 or 40 levels at this stage. One would, however, not expect the Reserve Bank of India to let the rupee move below a specific level. The rupee is overvalued in terms of other Asian currencies.

Alok Sethi Director, NatWest Markets

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First Published: Jan 15 1998 | 12:00 AM IST

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