No target or band set for rupee: Gokarn
Agencies: Mumbai, Nov 19 2012, 21:25 IST
currency volatility become more dominant if current account deficit is high.
Therefore, "addressing the domestic drivers of currency dynamics holds key to rupee stabilisation," he said.
On corporates concentrating on forex gains to boost profits, Gokarn said, companies should be concentrating more on their core business to generate returns rather than looking to generate profits from diversifying into trading in forex markets.
Incidentally, many companies and even banks reported good bottomlines in the second quarter which was partly attributable to gains made by them in forex market.
He also said banks are expected to show caution while offering forex derivatives to companies as firms enter into such transactions without fully understanding the downside implications of such deals.
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