Unfazed by the rupee touching psychological level of 57 against the US dollar, Finance Minister P. Chidambaram today said there is no cause for alarm and the currency will soon find its stable level.
“There is no alarm bell on the rupee front. I think rupee will soon find its stable level. (Foreign) Inflows are good in the past two months, it was extremely good,” he told reporters on the sidelines of an event here.
In the past eight days, rupee has weakened by over 150 paise against the dollar, amidst concerns of withdrawal of stimulus by the US administration.
It moved in a range of 56.89 per dollar and 57.00 per dollar during the morning trade today.
The rupee today hit the 57-level in the late morning trade after 11 months on persistent dollar demand from importers and banks.
The domestic currency had touched a record low of 57.32 in late June last year.
Supported by portfolio capital inflows and various reform measures announced during the period, the rupee remained strong during December 2012 to early—February 2013.
However, the rupee witnessed some weakness during the second week of February to early March. It gained some strength to remain largely range—bound and saw subsequent appreciation during April 2013.
Rupee started its downward journey against the dollar in May and hit 11-month low levels.