RBI Thinks Difficult to Predict Rupee Path

Attributing the decline in rupee to global factors, Reserve Bank Governor D Subbarao today said it would be difficult to estimate when the situation will improve.

"The rupee depreciation over the last six weeks has been because of global factors .... It is difficult to say how long that effect will persist because it is factors beyond our control," he told reporters here.

The rupee has declined by about 9 per cent in the past three months and had touched a record low of 61.21 to the dollar on July 8.

The currency recovered after the RBI and Sebi announced measures to curb volatility and speculation in the currency derivative market.

The rupee climbed to a one-week high today and closed at 59.67 on Thursday.

On the possibility of a rate cut, Subbarao said he would assess growth, inflation and the external situation while taking a view in the upcoming policy on July 30.