MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) & (b) : The rupee has depreciated against the US dollar, the Euro and the Pound Sterling by 4.2 per cent, 1.7 per cent and 1.0 per cent respectively, while it has appreciated against the Japanese Yen by 8.9 per cent during April-February 2001-02, over the corresponding period of 2000-01. The exchange rates of the rupee against the four major world currencies as on March 30, 2001 and February 27, 2002 are given below:
Date Rs./ US dollar Rs./Yen+ Rs./Euro Rs./Pound Stg.
March 30, 2001 46.64 37.43 41.01 66.58
February 27,2002 48.74 36.26 42.14 69.04
+ Rupees per 100 Yens.
(c): The exchange rate of the rupee is largely market determined. The primary objective of the Reserve Bank in regard to the management of the exchange rate continues to be the maintenance of orderly conditions in the foreign exchange market, meeting temporary supply-demand gaps, which may arise due to uncertainities or other reasons, and curbing destabilising and self-fulfilling speculative activities. To this end, the Reserve Bank monitors closely the developments in the financial markets at home and abroad and take such monetary and other measures as it considers necessary from time to time.
(d): The purchasing power of Indian rupee measured on the basis of Consumer Price Index for Industrial Workers with base 1971 for the years 1971 through 2001 is given in the table at Annex.
(e), (f) & (g): The exchange rate of the rupee is determined by the demand and supply conditions in the foreign exchange market and short-term factors. The exchange rate is also influenced to some extent by the strength of the US dollar in the international currency markets. Under this system, the exchange rate of the rupee against the major foreign currencies moves in both directions on a day to day basis.
ANNEXURE
Consumer Price Index and Value of Rupee with base 1971
Year CPI-IW Value of Rupee in paise
1971 100 100
1972 107 93.46
1973 125 80.00
1974 161 62.11
1975 170 58.82
1976 157 63.69
1977 170 58.82
1978 174 57.47
1979 185 54.05
1980 206 48.54
1981 233 42.92
1982 251 39.84
1983 282 35.46
1984 305 32.79
1985 322 31.06
1986 350 28.57
1987 380 26.32
1988 416 24.04
1989 446 22.42
1990 486 20.58
1991 553 18.08
1992 619 16.16
1993 658 15.20
1994 722 13.85
1995 792 12.63
1996 871 11.48
1997 933 10.72
1998 1057 9.46
1999 1106 9.04
2000 1150 8.70
2001 1194 8.38
- Conversion Factor of 4.93 is used to convert the series based on 1982=100 to the series based on 1960=100.
- Conversion Factor of 1.89 is used to convert the series based on 1960=100 to the series based on 1971=100.
