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FSDC meet to discuss rupee fall, state of markets

Last Updated: Tuesday, August 6, 2013 - 20:53

New Delhi: RBI and the Finance Ministry will review the situation arising out of the weakening rupee and the widening current account deficit (CAD) at a meeting of the sub-committee of Financial Stability and Development Council (FSDC) on Wednesday.

"The FSDC sub-committee will meet tomorrow in Mumbai. Developments on the rupee front and the CAD are likely to be discussed in the meeting," a senior finance ministry official said.

The sub-committee meeting, headed by RBI governor D Subbarao, will also be attended by senior finance ministry officials including Department of Economic Affairs (DEA) Secretary Arvind Mayaram.

India's CAD touched a historic high of 4.8 percent of the GDP in 2012-13 and is seen as one of the key reasons for the weakness in the domestic currency.

The rupee plunged to all-time intra-day low of 61.80 against the US dollar today.

Later, it erased all the losses to end with a gain of 11 paise at 60.77 after the central bank is believed to have intervened heavily in the forex market.

PTI

First Published: Tuesday, August 6, 2013 - 20:50
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