New Delhi: Expressing deep concerns over the sharp rupee depreciation hurting economic growth, Indian Inc on Thursday pitched for RBI intervention to stymie the currency slide even as credit rating agency S&P said many corporate stand to benefit from the volatility.

The rupee fell to a historic low of 54.30 per US dollar in early trade on Thursday , amid sustained foreign capital outflows and strengthening greenback. Even though the domestic currency recovered some of its lost ground, the decline is worrisome for industry as well as policymakers.

Maruti Suzuki India Chairman R C Bhargava said plunging rupee is increasing cost of production "quite a bit", and the royalty is also getting more expensive.

"Overall, it is a depressing environment. Falling rupee and subsequent increasing of prices at this time will leave a negative impact on demand," he noted.

The declining rupee is not only pushing up import bills -especially of oil - but also putting pressure on the government, which is already grappling with high inflation and economi slowdown.

CII Director General Chandrajeet Banerjee said: "We really need an intervention (in forex market) from the RBI.

There are a lot of instruments in the RBI's hand in terms of restricting fall of rupee."

The stated policy of RBI is to intervene in forex market only to check volatility.

In nearly four-and-a-half months, weak economic conditions, inflation, high interest rates, increased capital outflows and trade deficit have weakened the rupee by about 20 per cent against the US dollar.

Meanwhile, rating agency S&P said that rupee fall could be beneficial for those Indian companies who have large exports and have global presence.


(Agencies)