Sense of panic in market completely unfounded: Mayaram

NEW DELHI Tue Aug 20, 2013 6:29pm IST

People look at a screen displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai August 16, 2013. REUTERS/Danish Siddiqui

People look at a screen displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai August 16, 2013.

Credit: Reuters/Danish Siddiqui

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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