India banks brainstorm to save rupee amid volatility
In response to the slowly depreciating rupee, the government of India is looking at any possible options available to them, said the country's Chief Economic Adviser Raghuram Rajan. One of the possible ways to save the currency, he said, is a sovereign bond issue.
Currently, India is doing all dollar investment attraction measures including a four day state visit to the United States.
The Indian unit slipped to about 35% since October in 2010. The rupee close 59.56 on Friday, only a little stronger than the all-time low closing the day before.
"They have given us a lot of ideas, including sovereign bond issues, NRI bond issues. All options are on the table and we will examine them. As and when the need comes, we will take up those options," said Rajan in a meeting with the country's top investment banks.
The market has been experiencing high volatility recently, brought about by United States industry activities.