Rangarajan says the rupee correction was expected

New Delhi: Adjustment in rupee, which has fallen by nearly 20 percent since May, was called for as the country has seen high inflation compared with other countries, Prime Minister's economic adviser C Rangarajan said on Tuesday.

[caption id="attachment_1081783" align="alignleft" width="380"] Raghuram Rajan, the new RBI governor. AFP[/caption]

"In some sense, the adjustment in the rupee was very much called for because our inflation rate was running so much higher than in the other countries," said Rangarajan, chairman of Prime Minister's Economic Advisory Council.

On Tuesday, the partially convertible rupee, the worst performing currency among the major global economies, dropped as much as 3.1 percent to 68.12 per dollar.

Reuters