Rupee has overshot reasonable level: FM

RBI measures aimed at addressing volatility, not targetted at a particular level for rupee

As Rupee fell further breaching 65 against a dollar today, Finance Minister P Chidambaram said the Indian currency is undervalued and has overshot what is generally believed to be a reasonable and appropriate level.

He said capital inflows will, in due course, correct the position, but maintained RBI's measures were aimed at addressing the volatility and not targetted at a particular level for the rupee.

Addressing the mediapersons, Chidambaram said the government was exploring structural measures to further reduce CAD to sustainable levels and improve capital inflows.

The finance minister assured growth will pick up in Q2 to Q4 on the back of increase in sown area, pace in acceleration of Plan expenditure and clearance of infrastrcture projects.