Chidambaram allays fears on Indian rupee's fall, says Fed statements being misunderstood

Finance Minister P Chidambaram tried to once again soothe frayed nerves of investors, saying there was no need to panic over the recent slide in the Indian rupee's value against the US dollar.

The finance minister also said the Reserve Bank of India (RBI) would take steps when necessary to control further slide.

The Indian rupee slumped to a record low of 59.98 against a dollar on Thursday, a day after the US Federal Reserve signalled an end to its monetary stimulus on signals of recovery in the US economy.

"I think Mr Bernanke's statements are being misunderstood. It is not just you all (Indian journalists) but your counterparts outside also," Chidambaram said on Friday.

The minister said the dollar has appreciated sharply against all major global currencies and not just the rupee.

"My request is we should not react and panic... It is happening around the world," Chidambaram said.

The Indian rupee recovered a little on Friday, closing at 59.27 at the Interbank Foreign Exchange market in Mumbai against its previous close of 59.57.

With inputs from IANS