BUSINESS

Rupee slide: Not to panic, says Kamal Nath

Source:PTI
October 24, 2008 18:57 IST

The Commerce Minister Kamal Nath on Friday described the steep fall in stock markets as a "serious" situation in unusual circumstances and said it needed to be addressed in an unconventional manner.

Talking to reporters, Nath said, "This is a serious situation and we require to seriously address it. These are unusual circumstances and unusual global situation and have to be addressed in unusual manner."

He also sought to allay fears on the domestic currency crossing 50-mark against a US dollar saying that there was no need for any panic and termed the development an aberration.

"Rupee slide is an aberration. It is weakening because of capital outflows by foreign funds," Nath said and added,"nothing to panic about rupee as it will find its own level in due course."

The stock markets crashed with the BSE benchmark Sensex losing nearly 1100 points to close below 9000-mark for the first time in about three years.

The rupee also crossed the 50-mark in opening trade itself on sustained demand for dollars but settled the day lower at 49.95/96.

The Sensex has dropped 1,982 points in the three-day long losing streak. Nath also made an effort to interpret the situation in a positive manner saying "the easiest liquidity available is in selling stocks in India. This shows how healthy stock market is... how easily the institutional investments in India are converted into liquidity. So this is in fact a feather in the cap for the Indian economy."

Source: PTI
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