BOMBAY (PTI): The Reserve Bank of India (RBI) made a change in the official exchange rate of the rupee vis-a-vis the U.S. dollar from Rs 25.89 to Rs 26.20 in what appeared to be the second attempt by the Central Bank in recent times to correct the exchange rate to favor exports.
The RBIs announcement amounted to a downward revision of 1.18% in the Rupee exchange value vis-a-vis the dollar making the U.S. unit 31 paise dearer.
An RBI spokesman commenting on the latest change in the Rupee value said the measure has been taken to maintain Indias export competitiveness.
The Rupee was depreciated in two stages by 18.6% on July 1&3 in 1991 to bolster the exports. However this is the first time the Rupee-dollar parity has been changed after the RBI linked the Indian currency to the U.S dollar in the basket of currencies on March 3 last prior to which the Rupee value was anchored to the pound sterling.
Consequent to the rate change the Reserve Banks rate for the spot sale of U.S. dollar and spot purchase of U.S dollar pound sterling Deutsche mark and Japanese Yen have been revised as follows (previous in brackets):
U.S. dollar buying and selling rate per Rs 100 is 3.8265/3.8075 (previous 3.8720/3.8530. U.S. dollar buying and selling rate per Rs 100is3.8265/3.8075 (previous 3.8720/3.8530). Pound sterling buying rate per Rs 100 2.4474 (2.4990). Deutsche mark buying rate per Rs 100 6.07 (6.12). Japanese Yen buying rate per Rs 100 470 (483).
Article extracted from this publication >> December 18, 1992
