P Chidambaram: Indian rupee should be at 59-60 to US dollar

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P Chidambaram P Chidambaram
SummaryCost of money in China and cost of money in India can't be same: Chidambaram

the second month in a row, outward shipments rose 12.97 per cent to USD 26.14 billion and imports dipped 0.68 per cent to USD 37 billion, in August.

During April-August, exports were up by 3.89 per cent at USD 124.42 billion, while imports too grew by 1.72 per cent to USD 197.79 billion, leaving a trade deficit of USD 73.36 billion.

The rupee's trouble began after the US central bank hinted in late May that it would stop its USD 85 billion bond buyback programme sooner than expected, which led to a flight of capital back to the US shores, as the statement had led to spike in bond yields there.

As a result, FIIs pulled out close to USD 13 billion from domestic markets, primarily debt, between end May and August.

However, within the first fortnight of the new RBI Governor Raghuram Rajan taking charge, the rupee regained more than 10 per cent of its lost value, though since then it had shed some, following the 25 bps repo rate hike on September 20.

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