Analyst Suggest India Free Float Rupee

As the world’s worst performing currency this year plumbed new lows this week, some analysts are suggesting that India policymakers loosen the grip on the rupee to stop the rout.

Peter Redward, principal at Redward Associates & Andrew Freris, told CNBC’s Asia Squawk Box on Friday that India needs to follow in the footsteps of New Zealand and South Korea and make its currency fully convertible.

“If you look at the New Zealand dollar, it was floated at $0.44 and it’s now at (around) $0.80, the problem it has now is that it’s overvalued,” said Redward, referring to near 80 percent hike in value since the currency was floated in 1985.

Redward also referred to how freeing up the South Korean won has demonstrated potential benefits for the currency.

via CNBC

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