Modi govt strategy in place to tackle weakening rupee, widening CAD

Seeking to calm the nerves of stock market investors, a top finance ministry official on Thursday said that the government has a strategy in place to tackle weakening rupee and widening current account deficit (CAD).

The BSE Sensex lost over 750 points while the rupee touched a record low of 74.45 to a dollar. The government sources attributed Thursday’s plunge to external factors. The Indian market is still relatively stable as compared to other equity markets, they said.

“What happened in the United States yesterday had a ripple effect in Asian markets. International Monetary Fund (IMF) has downgraded global and the US growth rate for next year, and both these had an impact on markets,” the official said.

All options are available to tackle weakening rupee, including non-resident Indian (NRI) deposits, he said.

Source: DNA Money Correspondent