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'Finance Ministry, RBI keeping close watch on rupee; CAD under control'

The government proposes to bring down the fiscal deficit in current fiscal to 3.9 percent of GDP.

PTI| Updated: Jan 16, 2016, 00:28 AM IST

New Delhi: With the rupee falling to 67.38 against the US dollar, the Finance Ministry on Friday said it, along with the Reserve Bank, is keeping a close watch on the currency movement and asserted that current account deficit will remain well under control.

The government, Economic Affairs secretary Shaktikanta Das said, will stick to the fiscal deficit roadmap for this year as well as the next. "Finance Ministry and RBI keeping close watch on currency movements. Current Account Deficit expected to be in the range of 1-1.3 percent in current year. Well under control," Das tweeted.

Not only Rupee, but other comparable currencies too are depreciating against dollar, he said, adding that the "positive for India is that the CAD is well under control". Das said the government will initiate new reform measures in near future and will further open up sectors to attract foreign direct investment.

He said the path of fiscal consolidation will be adhered to and it would be government's endeavour to maintain fiscal deficit target not only this year but next year as well. The rupee was trading at 67.38 to a dollar in the late morning trade today.

The government proposes to bring down the fiscal deficit in current fiscal to 3.9 percent of GDP, from 4 percent in 2014-15. As per the fiscal consolidation roadmap, the deficit is pegged at 3.5 percent for the next fiscal beginning April.