NEW DELHI: In the wake of the rupee falling to 67.60 against the US dollar, the government on Friday said it, along with the Reserve Bank of India (RBI), is keeping a close watch on currency movements and that the current account deficit (CAD) will remain under control.
"Finance Ministry and RBI keeping close watch on currency movements", Economic Affairs secretary Shaktikanta Das said in a tweet.
"Current Account Deficit expected to be in the range of 1 to 1.3 % (percent) in current year. Well under control," he said in another tweet.
The rupee surrendered its initial gains and closed trade on Friday at 67.60 to the US dollar. According to analysts, the rupee fall was driven primarily by pressure on Asian currencies triggered by collapsing commodity prices and risk of further devaluation of the Chinese yuan.