Rupee will stabilise in 3-4 days: Government

The Indian rupee, which has plunged by almost 2.5 percent in the last two sessions and hit a record low of 58.95 against a dollar Tuesday, is likely to stabilise in the next three to four days, a top government officials said.

"In next three-four days, we will see a mid-course correction... Rupee is going to stabilise and we are going to see a positive movement," Economic Affairs Secretary Arvind Mayaram told reporters here.

The partially convertible rupee weakened by 77 paise to hit a new low of 58.95 against a dollar at the interbank foreign exchange market in Mumbai.

The Indian currency had registered its biggest fall in almost two years Monday. It had slumped by 1.9 percent to close at 58.16 against a dollar.

The value of rupee has depreciated by more than eight percent in the past one and half month. It has dropped in 16 out of the last 18 trading sessions.

Mayaram said the government was not "unduly disturbed" by the recent fall in the value of Indian currency.

"This is a temporary phase. This is simply a correction. Our indication is some of the FIIs (foreign institutional investors) are now poised to bring in large funds," Mayaram said.

"Certainly we are not happy about it, but we are certainly not unduly worried about it. There will be a course correction," he added.

Chief economic advisor in the finance ministry Raghuram Rajan said the market regulator Securities and Exchange Board of India (SEBI) and the Reserve Bank of India would take "warranted" action to control the rupee slide.

"SEBI, RBI and the government are keenly following what is happening and everybody will act when the time comes," Rajan said while addressing a press conference here.

Rajan said the factors that were responsible for rupee slide were reversing and the currency would stabilise in a few days.