'Irrational Sentiment' Impacting Rupee Value: FinMin
Facebook Twitter google+ RSS Feed

'Irrational Sentiment' Impacting Rupee Value: FinMin

Wednesday, 28 August 2013, 12:44 Hrs   |    1 Comments
26
cmt right
27
Comment Right
52
cmt right
9
cmt right
Printer Print Email Email


“This is an irrational sentiment. It will correct itself. It is important to stay on the course. There is no need to panic,” Economic Affairs Secretary Arvind Mayaram told reporters.



Historic low



He was responding to a query on the value of the rupee, which fell to a new low of 68.75 against the dollar in intra-day trade today.



The rupee has declined over 20 per cent since April on concerns about the country’s widening current account deficit, slowing economic growth and capital outflows.



The rupee dropped today as oil prices rose in Asian trade on concerns over possible US military action against Syria.



Current account deficit



Seeking to assure investors, Mayaram said that the current account deficit (CAD) in 2013-14 will be much lower than expected.



“CAD will be much lower than expected. We have already seen some moderation in CAD,” he said.



CAD, which is the difference between the inflow and outflow of foreign exchange, hit a record high of $88.2 billion in 2012-13. The Government expects to bring it down to $70 billion in the current fiscal.



Derivatives trading



Mayaram further said that the Government does not plan to ban derivatives trading in the currency market, a move that experts feel could help in curbing speculation.



Yesterday, Finance Minister P. Chidambaram had said that the rupee is undervalued and came out with a 10-point action plan to revive the economy, which included promoting exports, encouraging manufacturing, and reducing the fiscal deficit and CAD.



Read More:



14 Global Leaders Who Redefine Business
Women CEOs Who Earn Whopping Salaries


Source: PTI
Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Philips
Sr. Executive
ISB
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
NIC
Reena Khanna
Founder
Solitaireworld
Dellas  Asse
sys-network admin
Computer Station
Write your comment now
Submit Reset
Reader's comments(1)
1: American $$ creates havoc in every country. Another lesson learnt
not to rely on USD....of course we have two issues useless politicians and need to rely heavily in imports for OIL. I wonder if there is any other way to get OIL.
Posted by:raj - 28 Aug, 2013
SPOTLIGHT