KOLKATA: The free fall in rupee is not a reflection of fundamentals of the Indian economy, which is well poised to attain its $5 trillion dollar goal in the next four to five years even as the global economy is facing headwinds at present, HDFC Chairman Deepak Parekh said.
The rupee depreciated about 10% this year as the dollar gained strength against all major currencies, triggering the risks of large capital outflows from the emerging economies which can have a destabilising effect on trade and finance.
"We have never seen a free fall of the rupee and the present currency depreciation is not a reflection of a change in the fundamentals of the Indian economy," Parekh said Tuesday at an event organised by the Indian Chamber of Commerce in Kolkata.
India's forex reserves shrunk to $528 billion as compared with its peak of $642 billion seen in September last year. The reserves can cover nine months of imports against 15 months of imports at the peak level.
"Fortunately, the present situation does not warrant a warning alarm," he said.
The Japanese yen has depreciated 23% against the dollar this year, while the pound depreciated by 16% and the Chinese Yuan by 15%.
