With the rupee dipping to an unprecedented low level, the Indian government is ready to take steps to curb volatility, reports said, quoting Chief Economic Advisor to the Finance Ministry Raghuram Rajan.
The rupee on Thursday weakened to an unprecedented 59.9275 per dollar, past the previous all-time low of 58.9850 touched on June 11.
The government is not short of options to tackle the fall of the rupee and will take actions as necessary, he told media persons after the rupee fell to a record low. He also said the Reserve Bank of India (RBI) would take action to support the rupee as appropriate.
"We are not short of actions or instruments as and when need arises," he said. "We will be alert to development, we do not like volatility and will take actions when necessary."
The rupee, he said, was not in shambles and "we should not be overtly pessimistic".
Rajan said the Current Account Deficit (CAD) was large, but we are on way to tampering it. Gold imports are coming off its peak, adding that CAD in June would be better than in May.
Earlier, Finance Minister P. Chidambaram held a meeting with his ministry officials about the rupee fall, which came a day after US Federal Reserve Chairman Ben Bernanke confirmed the Fed would begin winding down its stimulus spending later this year.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.