FSDC meet to discuss rupee fall, state of markets

RBI and the Finance Ministry will review the situation arising out of the weakening rupee and the widening current account deficit (CAD) at a meeting of the sub-committee of Financial Stability and Development Council (FSDC) tomorrow.

"The FSDC sub-committee will meet tomorrow in Mumbai. Developments on the rupee front and the CAD are likely to be discussed in the meeting," a senior finance ministry official said.

The sub-committee meeting, headed by RBI governor D Subbarao, will also be attended by senior finance ministry officials including Department of Economic Affairs (DEA) Secretary Arvind Mayaram.

India's CAD touched a historic high of 4.8% of the GDP in 2012-13 and is seen as one of the key reasons for the weakness in the domestic currency.

The rupee plunged to all-time intra-day low of 61.80 against the US dollar today.

Later, it erased all the losses to end with a gain of 11 paise at 60.77 after the central bank is believed to have intervened heavily in the forex market.