RBI chief Rajan says not in favour of devaluing exchange rate

RBI Governor Raghuram Rajan speaks during a gathering of industrialists and bankers in Mumbai, India, September 18, 2015. REUTERS/Shailesh Andrade/Files

TRIVANDRUM, India (Reuters) - Reserve Bank of India (RBI) Governor Raghuram Rajan said on Monday he was not in favour of devaluing exchange rates to boost economic growth, signalling India will not join other countries such as China or Japan in pushing down their currencies.

“I personally feel sustained devaluation is neither feasible nor a good strategy,” Rajan said in a speech at a conference on medium scale enterprises in Thiruvananthapuram.

“This (devaluation) is not the intent of RBI.”

But Rajan reiterated the central bank would strive to curb excessive volatility.

Rupee has been one of the worst performers in Asia this year, falling by nearly 3 percent after strong foreign investment outflows from equity markets.

Reporting by D Jose; Writing by Suvashree Dey Choudhury in MUMBAI; Editing by Rafael Nam