Reserve Bank Governor Y V Reddy met Finance Minister P Chidambaram in New Delhi on Tuesday and is understood to have discussed measures to tackle the rupee appreciation.
The meeting, ahead of the central bank's quarterly monetary policy review scheduled for July 31, went on for over an hour and was also attended by RBI Deputy Governor Rakesh Mohan and Chief Economic Advisor Ashok Lahiri.
Rupee has appreciated by around 10 per cent from January to June this year and it adversely affected certain categories of exporters such as textile, IT, leather, gem and jewellery.
The sources said apart from the issues of credit policy and rupee appreciation, Chidambaram and Reddy also discussed interest rate and further steps on how to contain inflation, which has come down to 4.13
However, when asked by reporters, Reddy declined to disclose what transpired in the meeting. "If I have to tell anything, I will tell you," he said when pressed by mediapersons after the meeting.
The RBI deputy governor also declined to comment on the discussions with the finance minister.
Earlier, Chidambaram had said that government is considering to take measures to provide relief to the exporters from the rising rupee. Referring to the demand of Commerce Minister Kamal Nath, Prime Minister Manmohan Singh had also assured exporters that government will soon provide relief to them.
RBI is expected to announce monetary measures on July 31, to provide relief to exporters, and to sustain inflation at the present level of around 4-4.25 per cent.
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