Rupee not in shambles; will take action as warranted: FinMin

New Delhi, PTI | Updated : 20 June 2013, 03:22 PM

Asserting that Rupee is not in 'shambles', Finance Ministry on Thursday said the government, RBI and Sebi are alert to the situation and will take actions as warranted.

"We are not short of instruments ... We have a range of instruments to call on as and when needed, we will call upon them," Chief Economic Advisor Raghuram Rajan said when asked what steps the government is contemplating to check Rupee which slid to an all time low of 59.93 to a dollar on Thursday.

The Finance Ministry, RBI and Sebi are alert to the situation, he said, adding" "All options are open to us (to stem Rupee fall). We have to be very careful in thinking through options".

The rupee hit a life time low of 59.93 to a dollar in early trade on Thursday. It later recovered ground and was trading at around 59.7 to a dollar in noon trade.

The US dollar strengthened against major currencies on comments by Federal Reserve Chairman Ben Bernanke that the US Fed may start scaling back its monetary stimulus programme later this year.

"Rupee is not in shambles. We should not be overtly pessimistic ... We do not like volatility. We will take actions when warranted," Rajan said.

He further said the Current Account Deficit (CAD) is large and the government is taking steps to taper it.

"We have a Current Account Deficit which is large, but I believe we are on our way to tapering it ... gold imports are coming off their peaks," he said.

He however, ruled out any knee-jerk reaction to curb gold imports saying such reactions would not augur well for the overall health of the economy.

First Published: Thursday, June 20, 2013 03:19 PM

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