The Finance Ministry, on Monday, sought to assure the investors that the country’s fundamentals were ‘very strong’ even as the rupee slipped to below 63 to the dollar, and the BSE Sensex plunged by over 426 points on global cues, following currency crisis in Argentina.
“The current account deficit (CAD) is below $50 billion. Foreign exchange reserves are (at) all-time high. We have very strong fundamentals... I don’t think that there is any cause of worry,” Economic Affairs Secretary Arvind Mayaram told reporters here.
He was responding to a query regarding the sudden decline in the value of the rupee.
The rupee slipped to nine-week low of Rs. 63.1 to a dollar. Referring to the impact of peso crisis in Argentina on the Indian markets, Dr. Mayaram said: “There is no reason why we should believe that if Argentina is in trouble today then the Indian rupee should follow. I do not think that correlation exists at all.”