Rupee fall: Don’t panic, India better than many countries, says FM
Zee Media Bureau/Rd. Alexander/Diwash Gahatraj
New Delhi: With the Indian rupee falling further by the day and hitting an all time low of 65.56 against the dollar Thursday, Finance Minister P Chidambaram said there was no need to panic asserting that the condition of the Indian economy and currency was better than many countries across the world.
Losing for the sixth straight session, the rupee felt further today from Wednesday’s close of 64.11 to 65.56 before gaining some ground but still closing at an all-time low of 64.64 against the US dollar.
The rupee has lost about 16 percent this year. However, Chidambaram stated that there was no reason for excessive or unwarranted pessimism while assuring further that the condition of India was better than many countries.
Chidambaram also said the Reserve Bank of India and the government have no intention of introducing capital controls.
On 17 August, the BSE Sensex crashed by 769 points amidst fears of a return to capital control regime haunted investors who remained unconvinced that there would be no further curbs.
He also affirmed the government’s commitment to contain fiscal deficit at 4.8 percent of the GDP and the current account deficit at USD 70 billion in 2013-14.
The government is focused on revival thought growth will remain flat in the first quarter of the current fiscal, he said.
He also said all emerging economies appear to be affected by the currency volatility.