India to take action to stem rupee fall as necessary: Rajan

The Indian government is not short of options to tackle the fall of the rupee and will take actions as necessary, the top adviser in the finance ministry told reporters on Thursday, after the rupee fell to a record low.

Raghuram Rajan also said the central bank would take action to support the rupee as appropriate.

The rupee fell a day after US Federal Reserve Chairman Ben Bernanke confirmed the Fed would begin winding down its stimulus spending later this year, and data showed China's factory activity weakened to a nine-month low in June.

Rajan further said that current account deficit is large, but "we are on way to tampering it", adding gold imports are coming off its peak.

Sounding positive, Rajan said, CAD in June will be better than in May, and assured the investors that the finance ministry, Reserve Bank of India, and the Securities and Exchange Board of India are watching the markets.

Rupee, he said, is not in shambles and "we should not be overtly pessimistic".

Additional inputs from PTI