FM Arun Jaitley says rupee value needs to be market driven

Finance Minister Arun Jaitley said on Friday the value of the rupee should be market-driven, while noting India had potential to touch doubt-digit economic growth.

The rupee has fallen nearly 1 per cent against the US dollar so far this year, despite signs of an improving economy, with analysts predicting India could surpass China's growth.

But analysts believe the currency is still over-valued in real effective exchange rate (REER) terms, which is calculated on a trade-weighted basis against a basket of 36 currencies and is adjusted for inflation.

(Reuters)