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Indian rupee not in shambles, will take action as warranted: Finance Ministry

Jun 20 2013, 14:46 IST
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Raghuram Rajan also said RBI would take action to support the rupee as appropriate. (Reuter) Raghuram Rajan also said RBI would take action to support the rupee as appropriate. (Reuter)
SummaryWith panic gripping currency markets, Raghuram Rajan steps in to soothe frayed nerves.

With the rupee dipping to an unprecedented low level, the government is ready to take step to curb volatility, Chief Economic Advisor to the Finance Ministry Raghuram Rajan said today.

The government is not short of options to tackle the fall of the rupee and will take actions as necessary, he told reporters shortly after the rupee fell to a record low.

The rupee today weakened to an unprecedented 59.9275 per dollar, past the previous all-time low of 58.9850 touched on June 11.

Rajan also said the Reserve Bank of India (RBI) would take action to support the rupee as appropriate.

"We are not short of actions or instruments as and when need arises," he said. "We will be alert to development, we do not like volatility and will take actions when necessary."

The rupee, he said, was not in shambles and "we should not be overtly pessimistic".

Rajan said the Current Account Deficit (CAD) was "large, but we are on way to tampering it. Gold imports are coming off its peak."

CAD in June will be better than in May, he added.

Earlier, Finance Minister P Chidambaram held a meeting with his ministry officials about the rupee fall, which came a day after US Federal Reserve Chairman Ben Bernanke confirmed the Fed would begin winding down its stimulus spending later

this year.

Govt to take action to stem rupee fall as necessary: Raghuram Rajan

(Reuters) Government is not short of options to tackle the fall of the rupee and will take actions as necessary, the top adviser in the finance ministry told reporters on Thursday, after the rupee fell to a record low.

Raghuram Rajan also said the RBI would take action to support the rupee as appropriate.


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The rupee fell a day after US Federal Reserve Chairman Ben Bernanke confirmed the Fed would begin winding down its stimulus spending later this year, and data showed China's factory activity weakened to a nine-month low in June.


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