Economists on Thursday tried to reassure investors, saying the rupee's fall to record lows and the sharp plunge at the stock markets
were only knee-jerk reactions to US Federal Reserve Chairman Ben Bernanke's statements on the US economy.
Bernanke on Wednesday said he would gradually slow down
the bond purchase programme of $85 billion per month (popularly known as quantitative easing) by the end of the year on the back of the recovery seen in American economy.
The announcements may have panicked investors but economists said a recovery in the US economy is a good sign as this will boost Indian exports.
"I think, this is a knee-jerk reaction to Fed chairman Ben Bernanke's announcement regarding gradual tapering of the stimulus programme. But an overall improvement in the US economy will be beneficial to our exports growth," Crisil chief economist Dharmakriti Joshi said.
The rupee, which
has touched all-time low of 60 against the US dollar in intra-day trade on Thursday, is also likely to appreciate from these levels soon.
"We will revise the rupee targets soon. We think the rupee will appreciate from the current level," Joshi said, adding that the market will stabilise as more clarity comes on the US stimulus programme.
Asian markets on Thursday shed over 2 per cent while the
BSE Sensex tumbled 2.8 per cent, or 526 points, to 18,719 points.
With inputs from PTI 
PHOTO: Reuters 
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