Strong rupee hasn't hurt India: Paulson

US Treasury Secretary Henry Paulson praised India on Monday for allowing market forces to dictate the rupee's value and said the currency's rise has not dented the country's growth.
"I have watched India and watched how the rupee has appreciated," Paulson told top Indian and American businessmen at a gathering in Mumbai. "India has let market forces operate and ... that hasn't affected India's economic performance."
The rupee has climbed to a 9 1/2-year high against the dollar this month amid strong foreign investment inflows.
While a strong rupee helps make imports cheaper particularly oil critics say the rupee's rise hurts exporters, especially software companies because the majority of their revenue depends on outsourcing orders from the West.
The rupee has risen more than 12 percent against the dollar this year and was recently trading at 39.39 to the dollar. Despite the appreciation, the Indian economy continues to grow at about a 9 percent rate.