Finance Ministry, RBI keeping close watch on rupee movement: Govt

New Delhi: With the rupee breaching the 68 mark against US dollar, Finance Ministry on Wednesday said it is keeping a close watch, along with RBI, on the domestic currency's movement and hoped that market volatility will stabilise soon.

Economic Affairs Secretary Shaktikanta Das said the ongoing currency and stock market volatility stem from investor expectation of rate increase by the US Federal Reserve as well as uncertainty around the Chinese economy.

"The central bank and the finance ministry...we are keeping a close watch. We are monitoring the situation. We are in constant touch and the central bank will deal with the situation as and when required," Das told reporters here.

He said all global currencies are depreciating and today's fall in the value of the rupee viz-a-viz dollar is perhaps a response to overall equity sell off and decline in stock market. "One would expect the situation to stabilise soon."

In mid-session stock market today witnessed a deep plunge, tanking around 650 points to crash below the 24,000-level on global growth worries and sharp dip in oil prices.

The BSE Sensex later closed 418 points lower at 24,062.04.

The rupee also breached the 68-mark against the US dollar for the first time since September 4, 2013.