With
rupee plunging to life-time low of 57.54 verus dollar, the Finance Ministry on Monday said there is an
unwarranted panic in the market and hoped it will settle down in a some time.
"If you see weakening of all currency vis-a-vis dollar, rupee is also not unaffected in that sense. But I think this is panic (in) the market which is unwarranted," Economic Affairs Secretary Arvind Mayaram said on sidelines of a workshop.
This, he said, started off with misinterpretation of what Federal Reserve Chairman Ben Bernanke had said in terms of Quantitative Easing (QE) recently.
"They have now more than clarified that this (Quantitative Easing) is not imminent neither it is going to something which will happen quickly. I think this will settle down in a while. We should not worry but we are watching the situation closely," he said.
The rupee on Monday plunged by 48 paise to hit its life-time low of 57.54 in early trade on heavy dollar demand and dollar gaining overseas on better-than-expected US jobs report. This crossed its previous all-time closing low of 57.32 touched in June-end last year.
The rupee witnessed some weakness during the second week of February to early March and saw subsequent appreciation during April 2013. Rupee started its downward journey against the dollar in May and hit 11-month low levels.
Special 
