With headline inflation still ruling above the 9 per cent mark, the chairman of the Prime Minister's Economic Advisory Council, C. Rangarajan today suggested that the Reserve Bank of India should continue to focus on controlling the rising prices.

Asked if the central bank should intervene to arrest the slide of the rupee against the dollar, Rangarajan said the stated policy of the RBI is to prevent volatility in the foreign exchange market.

He said the behaviour of the rupee is a reflection of the Current Account Deficit and extent of capital flows. He added that if capital flows pick up, what we are now seeing can also be reversed.