Fundamentals very strong, FinMin assures investors

Tags: News
The Finance Ministry today sought to assure the investors that the country's fundamentals are "very strong" even as the rupee slipped to below 63 to a US dollar and the BSE Sensex plunged by over 426 points on global cues, following currency crisis in Argentina.

"Current Account Deficit (CAD) is below USD 50 billion. Foreign exchange reserves are (at) all-time high. We have very strong fundamentals... I don't think that there is any cause of worry," Economic Affairs Secretary Arvind Mayaram told reporters here.

He was responding to a query regarding the sudden decline in the value of the Indian rupee. The domestic currency slipped to nine-week low of Rs 63.1 to a dollar, while the BSE Sensex plummeted by over 2 per cent or 426.11 points to close at 20,707.45.

Referring to impact of peso crisis in Argentina on the Indian markets, Mayaram said: "There is no reason why we should believe that if Argentina is in trouble today then Indian rupee should follow. I do not think that correlation exists at all."

The steep decline in Argentina's currency peso on Friday triggered a massive fall in stock markets around the world including in India.

On the rupee, Mayaram said: "You would see rupee will remain range bound. There will be some ups and downs but that is normal in markets. And therefore I think we should not be overtly concerned with marginal movements of rupee."

The currencies world over behave in a different manner depending on their own fundamentals, he said, adding that India has seen considerable improvement in its CAD situation.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Neither secular nor socialist, India at 66 is back where it began

    The republic has entered its 66th year but the nation is more than just another year older.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Building great cities (and nations)

Fifteen to twenty years’ span is the time when humans ...

Kuruvilla Pandikattu SJ

Defining success differently

Researchers spent four decades studying a group of mathematically talented ...

Shona Adhikari

All roads lead to Delhi, as it gears up for art fair

With the seventh edition of India Art Fair (IAF) coming ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture