No need for panic on rupee fall, govt monitoring situation: Official

"The government is monitoring the situation," Finance Ministry spokesman D.S. Malik told Reuters.
A board showing currency exchange rates at a money exchange store in Hong Kong. (File photo | AP)
A board showing currency exchange rates at a money exchange store in Hong Kong. (File photo | AP)

NEW DELHI: There is no need to panic about the Indian rupee's fall on Thursday, a finance ministry official said, after it fell to a record low of 68.86 against the U.S. dollar amid capital outflows from emerging markets and worries about the country's demonetisation drive.

"The government is monitoring the situation," Finance Ministry spokesman D.S. Malik told Reuters. Normally, market forces would decide the right value of the rupee, he said.

Despite repeated interventions by the central bank to stem the slide, the rupee breached its previous low of 68.85 against the U.S. dollar set in August 2013, when the country was mired in its worst currency crisis in more than two decades.

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