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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Global Trade Deal

Global Trade Deal

Rural votes, old traumas drive India's WTO brinkmanship.`  Full Article 

E-Commerce Funding

E-Commerce Funding

E-tailer Flipkart raises $1 billion in funding.  Full Article 

Chopper Deal

Chopper Deal

Finmeccanica settles with Italy prosecutors to end Indian chopper deal probe.  Full Article 

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

New Frontiers

New Frontiers

EXCLUSIVE - Goldman moves executive to new role building ETFs.  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Argentina Debt Default

Argentina Debt Default

Insight - Jaded Argentines brace for looming debt default   Full Article 

Anti-trust Probe

Anti-trust Probe

Microsoft targeted in apparent Chinese anti-trust probe  Full Article 

Gaza Conflict

Gaza Conflict

Israel strikes house of Hamas Gaza leader, digs in for long fight.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage