Millennium Post

‘Please do not panic on Rupee fall, we will do whatever is needed’

Expressing unhappiness over decline in the value of Rupee, Finance Minister P Chidambaram on Friday said that there is no need for panic and the Reserve Bank will take action when necessary.

'We are watching the situation, RBI will take whatever action it has to take. We have good economic advisors. We will (do) whatever has to be done ... My request is you should not react in panic, its happening around the world,' he said while replying to a query on Rupee slide at a press conference here.

Observing that India is not insulated from what is happening in the other countries around the world, Chidambaram said, 'We are not happy, we are unhappy (over) what's happening.

'But that's an impact that every currency in the world (is facing) because of certain announcements made by the US Federal Reserve.'
The fall in currencies of emerging markets, including that of India, is being attributed to the statement by Federal Reserve Chairman Ben Bernanke that the US Fed may start scaling back its monetary stimulus programme later this year.

The minister said: 'why should there be such a reaction in the world market. Obviously that money which is being pulled out from all emerging markets will ultimately have to find a place.'

Chidambaram further said that statement of US Federal chief Ben Bernanke was misunderstood by the markets.'It is my view that just as Bernanke's statement was misunderstood a month ago, Thursday's statement (too was) being misunderstood', the minister added.
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