Making a case for a robust rupee, the US said currency value should reflect the economic fundamentals, which has been good in the case of India.
“I am strongly committed to a stronger dollar, which is the intent in the US,” visiting US Treasury Secretary Henry Paulson said in a question and answer session at the Fortune Global Forum meeting.
“The value of currency should be market determined, rupee value should be set on the basis of economic fundamentals,” he said, while noting that in case of India the economic growth is good and inflation is under control.
The Indian currency has risen nearly 12 per cent against the dollar in 2007 and about 14 per cent in the past one year. The country’s central bank has not intervened much as this makes imports cheaper, helping it control inflation in the world’s second-fastest growing major economy.
He further said that a number of currencies are now market determined and China too will have to work towards that. “China has some work to do.”
