Chidambaram calls for reflection as rupee drops to historic low of 62 per dollar

Asserting that one should not be sensitive to data coming out of the US, Finance Minister P. Chidambaram commenting on the rupee dropping to a historic low of 62 rupees per dollar today, said this is a time for calm and reflection.

Chidambaram said the markets have taken a hit all over the world.

"Thanks to some numbers that came out of the United States. Yesterday was a holiday for the Indian market. Therefore, the Indian market has absorbed two days of hit in one day, which is why it appears to be a very severe hit. But all over the world for the last two days, the markets have taken a hit," said Chidambaram.

"But we must remember that the jobless claims in the US if they have come down or if they go up has really no relevance or impact on the Indian economy. If fewer people are waiting for jobs in the US or a few more people are waiting for jobs in the US, how does it affect the fundamentals of India's economy? Nevertheless, the markets react to these signals that come out of the US," he added.

Chidambaram said nothing has happened in the Indian economy between Wednesday and Friday morning.

"Nevertheless, the markets have taken a hit and that is reflecting in the rupee also. But we have taken a number of measures; a number of measures are being taken. Let's wait to see what the first quarter growth rates are," said Chidambaram.

"And I have no doubt in my mind when calm is restored in the market, people will begin to understand that Indian market indicators must basically reflect Indian market conditions. They should not be sensitive to data coming out of the US. So, I think that is a time for calm. This is a time for reflection and let us see what happens next week," he added.

The rupee dropped to a historic low of 62 rupees per dollar today on good demand for the US currency from banks and importers in view of sharp fall in equity market.

The rupee resumed slightly higher at 61.35 rupees per dollar as against the last closing level of 61.43 rupees. It moved in a range of 61.32 rupees and 62 rupees per dollar during the morning deals.