Rupee appreciates 2 paise to 67.19 against US dollar

NEW DELHI: The rupee rose 2 paise to 67.19 against the US dollar on Tuesday after the RBI governor Raghuram Rajan said that the prevailing level of rupee is pretty reasonable and any step taken to devalue it further may trigger inflationary pressures.
The domestic currency had declined 13 paise against the greenback to 67.20 on Monday, led by sustained dollar demand from banks and importers.

"The issue of value of the rupee is a complicated one. Some people think that to increase exports, the answer is devaluing rupee. There are, strictly, ways of doing it (devaluation), but lot of them require significant actions on the financial system that some of our neighbouring countries used for long time," PTI reported Rajan as saying.

The domestic currency with a 1.6 per cent fall this year has been worst performing currency this calendar after the Chinese yuan, which has fallen 3.06 per cent during the same period.

Terming the currency a complicated animal, the RBI Governor said some of India's emerging market counterparts like Brazil have had significant devaluations but haven't seen tremendous expansion in exports, the ET reported.

The rupee will consolidate its gains and continue its momentum, trading at 66.75/USD-67.25/dollar this week, said India Ratings in a note.