Pranab Allays Fears As Rupee Plunges

[golmaal govindam]

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Euro zone crisis hits stock markets too[/font][color=#3B3A39][font=Georgia,]
Even as the rupee plunged to its historic low of 54.56 against the U.S. dollar in keeping with the global bloodbath on the bourses, the Finance Ministry on Wednesday put up a brave face indicating that the Indian currency would find its own level of stability as and when the Euro zone crisis blows over.[/font][/color][color=#3B3A39][font=Georgia,]
Allaying concerns over the sharp slide of the rupee, Finance Minister Pranab Mukherjee sought to indicate in the Rajya Sabha that the free fall in the currency and the stock market was not owing to any intrinsic weakness of the Indian economy but on account of the global risk aversion following the heightened uncertainty in the Euro zone stemming from the fresh crisis in Greece.[/font][/color][color=#3B3A39][font=Georgia,]
Dubbing the global economic canvas “complex,” Mr. Mukherjee said: “It is because what has happened, what was decided by the electors of Greece in defeating a particular political party, raised the questions of uncertainty of resolving the Euro zone crisis and the package which was worked out by the leaders of Europe… there is a question mark.”[/font][/color][color=#3B3A39][font=Georgia,]
Mr. Mukherjee also sought to explain how any economic crisis in any part of today's globalised world had an impact on the economy of any country and, therefore, the currency and stock market mayhem should not lead to panic as stability would return when the crisis was resolved.[/font][/color]