India’s Growth De-Rated as Rupee Constrains Subbarao: Economy

India’s central bank chief pledged to take steps as needed to curb swings in the rupee as the currency’s slump threatens to stoke inflation and limit scope for interest-rate cuts.

“We will do whatever is necessary, consistent with our policy,” Governor Duvvuri Subbarao said late yesterday in Mussoorie, in north India. “We have taken action to improve the current flows, encourage inflows and also to curb speculation.”