Rupee fall not a cause of alarm, will soon stabilise: FM

Unfazed by the rupee touching psychological level of 57 against the US dollar, Finance Minister P Chidambaram on Thursday said there is no cause for alarm and the currency will soon find its stable level.

"There is no alarm bell on the Rupee front. I think rupee will soon find its stable level. (Foreign) Inflows are good in past two months, it was extremely good," he told reporters on the sidelines of an event.

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In the past eight days, rupee has weakened by over 150 paise against the dollar, amidst concerns of withdrawal of stimulus by the US administration.

It moved in a range of 56.89 per dollar and 57.00 per dollar during the morning trade today.

The rupee today hit the 57-level in the late morning trade after 11 months on persistent dollar demand from importers and banks.

The domestic currency had touched a record low of 57.32 in late June last year.

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Supported by portfolio capital inflows and various reform measures announced during the period, the rupee remained strong during December 2012 to early-February 2013.

However, the rupee witnessed some weakness during the second week of February to early March.  It gained some strength to remain largely range-bound and saw subsequent appreciation during April 2013.

Rupee started its downward journey against the dollar in May and hit 11-month low levels.