New York/Chennai, Sept 23
The RBI today said its intervention in the foreign exchange market, if any, would be limited to curbing volatility, but as of now, the situation does not call for any action even though the rupee has fallen to its weakest level in 28 months.

“We, at this point, do not see any intervention from a rate targeting view point. That is something that would reflect a change in policy stance, which we are not doing at this point,” RBI Deputy Governor Subir Gokarn said.

The falling rupee has become a cause of concern for policymakers as it could further push up inflation.

Meanwhile, Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan today said that the decline in rupee was expected as currencies of several other emerging economies had also fallen.

Rupee had stayed ‘very strong’ for quite a number of years and therefore some decline in its value was ‘expected’, Rangarajan said. The rupee this year has declined nearly 10 per cent against the dollar. In today’s trade, the Indian currency tumbled by 34 paise to nearly 28-month low levels of Rs 49.82 against US dollar. — Agencies