Rupee likely to stay stable if crude prices remain at current levels: SBI chairman

NEW DELHI: The rupee is likely to be stable if crude oil prices stay at moderate level and fiscal deficit is under check, State Bank of India (SBI) chairman Rajnish Kumar said on Tuesday.So far, the rupee has been stable against the dollar, he said at the CII Annual session.

“If the crude oil (prices) remain where they are, then there will be much less pressure on it. Our largest imports were either crude oil or gold. So gold import is practically zero and crude import is down because of softness in the prices. So that’s why pressure on the rupee is much less…So far the restraints shown by the government and the trend is likely to continue in the future,” he said.

The rupee has not witnessed a sharp spike in the past two months and has been trading in the range of 75-76 per dollar. Brent crude, the global price benchmark, was trading around $39 per barrel while oil for the Indian basket was quoted near $35 per barrel on Tuesday.
“I am expecting that currency is going to be stable,” he said.

With regard to lending to the NBFC sector, Kumar said SBI has been giving financial support to all such institutions which have satisfactory relation with the bank.