Take a deep breath to examine the fundamentals, urges Raghuram Rajan

Joining the growing chorus from the finance ministry that things aren't as bad as they appear, the Reserve Bank of India Governor Raghuram Rajan tried his best to soothe frayed nerves on the weakening rupee and faltering stock markets.

The rupee closed at 63.30 while markets continued their free fall for the seventh consecutive day.

At a press meet on Wednesday, Rajan reiterated that current account deficit (CAD) at $56 billion could be less than 3 per cent of gross domestic product, a point made by the finance minister almost ten days ago, when Chidambaram projected CAD to be close to $60 billion.



For Rajan to address a press meet with no specific announcement to make is a bit out of the ordinary, definitely a step towards better communication, to clear negative sentiments and offer clarifications in case of any ambiguity - we haven't seen very many Governors do that so far.