Steps are being taken to manage volatility of rupee: RBI

The RBI Governor D Subbarao, on Thursday said that steps were being taken to manage volatility in the currency movement after rupee continued to slide. The rupee fell 4.8 percent last month, and was the worst performing Asian currency. Subbarao ruled out any exchange rate target or plan. In what could be a vicious cycle, a weaker rupee will only add to concerns over funding the current account deficit, as India is one of the largest importers of crude oil and the biggest consumer of gold from abroad. Policymakers have introduced curbs on the precious metal such as raising taxes on imports and ruling out credit, in the hope that it will help reduce India's import bill. Subbarao also urged banks to lend more loans to eligible students.