Mumbai: The volatility in the rupee, which fell to a record low on Tuesday, is a reflection of the uncertainty in the international market, the finance minister said.
Pranab Mukherjee also said the Reserve Bank of India’s intervention would have been helpful if the fall was due to domestic factors.
A file photo of finance minister Pranab Mukherjee.
“We expect there will be a self correction in the market,” he told reporters without elaborating.
The rupee hit an all-time low of 52.73 against the dollar as oil refiners and other companies scrambled to buy the US currency, taking its slide to 16.8% from its 2001 high in late July.
The RBI is monitoring forex markets and will take required action as the situation unfolds, Pranab Mukherjee said.
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