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Re decline temporary, will stabilise soon: FinMin

Press Trust of India  |  New Delhi 

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 today. 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.

According to the official, the decline in stock market was due to the impact of "the stimulus given to the Chinese economy and also because of Chinese monetary policy easing".

The benchmark BSE Sensex dipped 556 points yesterday and another 210 points today.

In order to boost its economy, Chinese central bank eased the monetary policy on Sunday by cutting interest rates by 1 per cent, the steepest reduction since 2008.

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First Published: Tue, April 21 2015. 20:22 IST