Appreciating rupee is a temporary phenomenon: Chidambaram

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Coimbatore, Apr 20 : Union Finance Minister P. Chidambaram old the business fraternity that appreciating rupee was only a emporary phenomenon.

Chidambaram inaugurated a textile park here on Saturday.

Supported by capital inflows into the stock market the partially onvertible rupee traded at 39.92 per dollar on Thursday. In the past week the rupee has moved in a range of 39.89 - 40.01, nd the Reserve Bank of India (RBI) has repeatedly stepped in to tem the currency's rise.

"The appreciation in rupee value and depreciation in dollar value s only a temporary phenomenon and will get normal. The ndustrialists need not worry about it and should change their olicies and principles according to the situations," Chidambaram aid.

According to data released on Thursday annual inflation dipped to .14 per cent in early April, compared with a more than three ear high of 7.41 per cent in late March.

But traders said the data had little effect on the currency arket, although some still expect the RBI to allow the rupee to ppreciate to lower the prices of commodity imports, such as oil.

Experts say India was unlikely to meet the export target of 160 illion dollars for the fiscal year ended March 31, 2008 because f the rise in the value of the rupee.

ANI

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