India's 'strong' fundamentals will reduce rupee worry: Mayaram
The Indian rupee fell to as low as 62.90 to the dollar on Monday, its lowest since Nov. 22, as emerging markets remained under pressure on fears about an economic slowdown in China and uncertainty about monetary stimulus tapering by the U.S. Federal Reserve.<br /><br />
New Delhi/Mumbai: India's record high foreign exchange reserves and "strong" fundamentals should reduce concerns about the rupee currency, Economic Affairs Secretary Arvind Mayaram said on Monday.
"Today, our current account deficit is going to be below $50 billion, foreign exchange reserves are (at an) all-time high, and we believe that we have very strong fundamentals in place," Mayaram told reporters in New Delhi.
[caption id="attachment_1024413" align="alignleft" width="380"]
Department of Economic Affairs, secretary, Arvind Mayaram. Image courtesy PIB[/caption]
Mayaram added he did not believe the rupee would tumble and track steep falls in the Argentina peso.
"There is no reason why we should believe that if Argentina is in trouble today, that the Indian rupee should follow."
The Indian rupee fell to as low as 62.90 to the dollar on Monday, its lowest since Nov. 22, as emerging markets remained under pressure on fears about an economic slowdown in China and uncertainty about monetary stimulus tapering by the U.S. Federal Reserve.
More from EconomyReuters
India’s trade surplus with US may cross $90 billion after tariff cuts, says SBI report
Inflation likely to be a big focus area for budget 2024, say sources
Explained: Will the Bank of Japan break tradition and raise interest rates?
UK enters recession, central bank admits
Explained: How the rising US dollar can affect everyone