Pranab on rupee, stock market fall: Cannot ignore euro zone crisis Pranab on rupee, stock market fall: Cannot ignore euro zone crisis
Finance Minister Pranab Mukherjee says government action to check fall in rupee and stock markets is always guided by five-year plan.
BT Online Bureau - New Delhi,
- Updated May 16, 2012, 3:42 PM IST
Finance Minister Pranab Mukherjee
In response to the falling rupee and stock markets decline, Finance Minister Pranab Mukherjee on Wednesday said that Sensex and
Rupee fell because of the euro zone crisis impacting India.
Some key takeaways from Pranab's speech in Rajya Sabha- Complex international economic condition cannot be ignored; putting pressure on stocks, currency
- All Asian markets on a low today
- Government action to check fall is always guided by five-year plan
The Indian rupee slumped to a record low of 54.42 against the US dollar on Wednesday due to rising concern over fiscal deficit and poor economic outlook coupled with weak global cues.
FROM THE MAGAZINE: RBI can do little to check rupee's fall The partially convertible rupee was trading 1.18 per cent down at 54.42 against a US dollar. This is the weakest level of rupee recorded so far.
The earlier record low of 54.30 against a dollar was hit in mid-December last year. The rupee has slumped almost 10 per cent since March, the biggest fall among the major Asian currencies.
The Indian currency continued to slide despite the Reserve Bank of India's (RBI) intervention in the markets to control the fall.
The RBI last week asked exporters to convert at least 50 per cent of their
foreign exchange holdings in rupee. The move is estimated to lead conversion of around $3 billion of foreign currency, especially the US dollar, into Indian rupee.
The central bank has also spent over $20 billion in spot-market intervention since September 2011 to check the rupee slide.
With IANS inputs Published on: May 16, 2012, 2:18 PM IST
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