The rupee's decline against the US dollar is a temporary phenomenon and the domestic currency will stabilise soon, a top Finance Ministry official said. “The rupee is down momentarily, it will stabilise soon,” the official added.
The rupee fell to more-than three months low of 63.15 in early trade on Tuesday. However, it recovered later on dollar selling by banks to settle six paise higher at 62.85 against the US currency. The equity markets have tanked more than 700 points while the rupee weakened nearly 1 per cent over the last two days.
“The decline in stock market was due to the impact of stimulus given to the Chinese economy and also because of Chinese monetary policy easing.”