Prof. J.D. Agarwal, Chairman & Director, Indian Institute of Finance welcomed the RBI's hike in Bank rate & CRR to arrest the slide in the value of Indian Rupee.

According to Prof. Agarwal, RBI's decision to increase the bank rate and also Cash Reserve Ratio in two stages to tighten the liquidity is a welcome decision. Indian Rupee is alreaday undervalued and deserves to be strengthened feels Prof. Agarwal.The fundamentals of Indian Economy are strong and there is no reason for either the value of rupee to slide down or BSE's sensex to fall by 112 points over its previous closing

It only the speculators & vested interests who causing the fall in the value of the Indian Rupee adds Dr. Agarwal. The fall in value of the currency in the foreign exchange market send the wrong signals to the international community and become counter productive for the nation. India is doing very well currently and is therefore sending wrong signals by allowing the fall of the Indian rupee which would not be good for the economy

Accroding to him, in case the rupee falls further RBI should intervene and taken some more strong measures to arrest any further slide in the India rupee.