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No target level for rupee: Jalan

The Reserve Bank of India was not targeting any specific level for the rupee, which has shed around half a per cent against the dollar this week, RBI governor Bimal Jalan said on Friday.

"We keep a careful eye on the rupee, we are not targeting any level. It is wrong to say that RBI wants a weakening rupee," Reserve Bank of India Governor Bimal Jalan told a software industry seminar.

Currency traders have said that the latest spell of weakness in the rupee could have been engineered by the central bank to correct its overvaluation of more than two per cent on a trade-weighted basis.

The rupee hit a record closing low of 48.685/700 per dollar on Wednesday and Thursday. In late morning trades on Friday, it was quoted at 48.67/68.

"We try to see that our market should be orderly. Our policy on the exchange rate front is we should have strong foreign exchange reserves to cover all our liquidity risks, which include FII (foreign institutional investors) outflows, foreign debt servicing and any other risk," Jalan said.

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