Sense of panic in market completely unfounded: Mayaram
NEW DELHI (Reuters) - The sense of panic that has taken the rupee to record lows is "completely unfounded" and the financial markets will begin to see in a few days that it is unwarranted, a senior finance ministry official said on Tuesday.
Economic Affairs Secretary Arvind Mayaram added that the government had no intention of imposing capital controls to address the situation.
"There is no question of capital controls coming in," he said, adding that the government could more than fund a gap in its current account deficit for the current year.
He was speaking after the rupee fell past 64 to the dollar for the first and bond yields spiked to a five-year high as Asia's third-largest economy bore the brunt of the global emerging markets sell-off.
(Reporting by John Chalmers)
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India's battle with inflation and weak economic growth became more challenging on Thursday with a sharp spike in the cost of food driving the highest retail price rises on record and a worse-than-anticipated contraction in industrial production. Full Article