NO NEED TO PANIC, SAYS JAITLEY BUT RBI MAKES INTERVENTION

Finance Minister Arun Jaitley on Wednesday said there was no need to be pensive over the steep fall in the rupee's value, as the intrinsic strength of the economy will help arrest the slide.

The assertion came even as the rupee's unabated fall continued for the sixth day on Wednesday as it hit yet another closing low of 71.75 against the US dollar, forcing the RBI to intervene to prevent a full-blown meltdown.

The RBI is understood to have sold dollars at 71.80 rupees in the local spot forex market to stem the sharp fall in the currency, traders told wire agency Reuters.

Jaitley blamed the downswing on external factors such as fluctuations in the global crude oil prices, trade war tensions and outflows of funds towards the US, reports CNN IBN.

‘‘There is no need for the world's fastest growing economy to come out with a panic and knee jerk reaction," Jaitley said at a media briefing after the meeting of the Union Cabinet.

The rupee has lost over 11 per cent of its value since the start of the year, making it the worst performing currency in Asia. But Jaitley disagreed with the doomsayers and claimed that the dollar has strengthened against all currencies and not just the rupee.

“The Rupee has either consistently strengthened or remained in a range, not weakened. Compared to what it was 4-5 ago, Rupee is better off,” he asserted.