Indian rupee slides as oil prices rise

The rise in oil prices sends the Indian government scrabbling for investment flows from overseas.
September 25, 2000
The Indian rupee has depreciated rather alarmingly in the last week, touching Rs 46.4. According to an ABN AMRO Securities (India) report, Indian officials attempted to prevent a further slide by saying that the depreciation of the rupee was a result of the Indian currency finding its "fair value".

Ravi Kumar, chief foreign exchange dealer for ABN AMRO says that the "fair value" of the rupee is around 46.0, with the Indian government "comfortable with levels of 46.5 at this point of time." The Indian government has been pursuing a policy of an undervalued currency in order to boost exports and to attract foreign investment.

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