Rupee: FIEO seeks drastic measures from RBI.

NEW DELHI: Apex exporters' body FIEO today sought "drastic" measures from Reserve Bank like directly selling dollars to oil companies, to arrest the weakness in rupee.

Instruments like Millennium Bond may be introduced as with ECBs and FCCBs maturing shortly, there will be increased demand of dollars, Federation of Indian Export Organisations (FIEO) President Rafeeque Ahmed said in a statement.

The rupee slumped to a fresh low of 56.22 today, extending its losses for the third day as RBI's multiple attempts to prop up the currency did not have the much impact with fund outflows intensifying on renewed Greece concerns.

Ahmed said RBI could also directly sell dollars to oil companies so that they exit from spot market.

"The time has come to act immediately to protect the interest of the exporters, especially those from MSME sector, which contributes 60 of the country's total exports," he added.

"Drastic measures to augment supply of dollars has to be initiated by RBI and the government so that mismatch in demand and supply is addressed," Ahmed said.

He also asked the government to take bold reforms to address rising fiscal deficits and make India a preferred destination for foreign investments.

Source : economictimes.indiatimes.com