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Depreciation in rupee driven by factors outside RBI control, says JP Morgan

Sharing his assessment on weak rupee, Jahangir Aziz of JP Morgan said that the depreciation in the domestic currency is driven by the factors which are not in RBI's control and hence the central bank's intervention will not see much result.
“Intervention policies do work in a very short period of time in trying to slowdown the pace of depreciation but if depreciation is being driven by factors that are outside the control of RBI, you can intervene but you are not going to get very much out of that," he said.
On Thursday, rupee opened at record low 70.19 against the US dollar and further slipped to 70.26. It hit 70 to the dollar for the first time on Tuesday, falling 15 paise intraday due to sharp depreciation in Turkish lira. The rupee has fallen more than 9 percent year-to-date and around 2 percent in August.